Using data from the 2006 wave of the German Socio-Economic Panel (GSOEP), this paper analyzes how a minimum wage affects employment, wage inequality, public expenditures, and aggregate income in the low-wage sector. It is shown that a statutory minimum wage of EUR 7.50 per hour would cost...

Die Kritik am Verfahren zur Bemessung der Grundsicherungs- bzw. Sozialhilfeleistungen reißt auch nach der Reform von 2011 nicht ab. Vor diesem Hintergrund wird zunächst der Frage nachgegangen, ob der methodische Ansatz (Statistikmodell) und die vom Gesetzgeber gewählten Referenzgruppen unter...

In dieser Expertise wird der Stand der internationalen und deutschen Forschung zu den Wirkungen von Mindestlöhnen zusammengefasst. Die neuere Forschung zeigt übereinstimmend, dass sich keine negativen Beschäftigungswirkungen feststellen lassen. Diese Ergebnisse lassen sich auch auf...

We analyze the impact of the UK national minimum wage (NMW) on the employment of young workers. The previous literature found little evidence of an adverse impact of the NMW on the UK labor market. We focus on the age-related increases in the NMW at 18 and 22 years of age. Using regression...

Using an intertemporal model of saving and capital accumulation we demonstrate that it is impossible for any binding minimum wage to increase the after-tax incomes of workers if the production function is Cobb-Douglas with constant returns to scale, or if there are no differences in ability...

In this paper we provide a novel justification for the use of minimum wage rules to supplement the optimal tax-and-transfer system. We demonstrate that if labor supply decisions are concentrated along the intensive margin and employment is efficiently rationed, a minimum wage rule can be...

This paper sheds new light on the effects of the minimum wage on employment from a two-sided theoretical perspective, in which firms' job offer and workers' job acceptance decisions are disentangled. Minimum wages reduce job offer incentives and increase job acceptance incentives. We show that...