2023-09-28 14:46:10 +00:00
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abstract: 'Do minimum wages reduce in-work poverty and wage inequality? Or can
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alternative policies do better? Germany suffers from high unemployment
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among low-skilled workers and rising wage dispersion at the lower end of
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the wage distribution. We analyse the impact on employment, wage
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inequality, public expenditure, and incomes of poor households of three
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different policy options currently being discussed in Germany: a
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statutory minimum wage, a combination of minimum wages and wage
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subsidies, and pure wage subsidies to low-paid workers. In doing so, we
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distinguish between perfectly competitive and monopsonistic labour
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markets. We find that a minimum wage of EUR 7.50 would cost between
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410,000 and 840,000 low-paid jobs, increasing the fiscal burden, while
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only moderately raising the income of poor households. With pure wage
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subsidies, the government can always ensure more favourable employment
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effects. Combining a minimum wage with a wage subsidy turns out to be
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extremely costly and inferior to wage subsidies in all respects.'
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affiliation: 'Knabe, A (Corresponding Author), Free Univ Berlin, Berlin, Germany.
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Knabe, Andreas; Schoeb, Ronnie, Free Univ Berlin, Berlin, Germany.
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Knabe, Andreas, Univ Magdeburg, D-39106 Magdeburg, Germany.
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Schoeb, Ronnie, Ifo Inst Dresden, Dresden, Germany.'
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author: Knabe, Andreas and Schoeb, Ronnie
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author_list:
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- family: Knabe
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given: Andreas
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- family: Schoeb
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given: Ronnie
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da: '2023-09-28'
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doi: 10.1080/09644008.2011.606316
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eissn: 1743-8993
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files: []
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issn: 0964-4008
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journal: GERMAN POLITICS
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keywords-plus: INEQUALITY; SUBSIDIES
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language: English
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number: '4'
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number-of-cited-references: '46'
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orcid-numbers: Knabe, Andreas/0000-0003-1298-0416
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pages: 506-526
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papis_id: 716a91c1420c543afd2b2b9e32d2e2cd
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ref: Knabe2011minimumwages
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times-cited: '0'
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title: 'Minimum Wages and their Alternatives: A Critical Assessment'
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000299222000003
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usage-count-last-180-days: '0'
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usage-count-since-2013: '18'
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volume: '20'
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web-of-science-categories: Political Science
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year: '2011'
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