abstract: 'In 2015, Germany introduced a statutory hourly minimum wage that was not

  only universally binding but also set at a relatively high level. We

  discuss the short-run effects of this new minimum wage on a wide set of

  socioeconomic outcomes, such as employment and working hours, earnings

  and wage inequality, dependent and self-employment, as well as

  reservation wages and satisfaction. We also discuss difficulties in the

  implementation of the minimum wage and the measurement of its effects

  related to non-compliance and suitability of data sources. Two years

  after the minimum wage introduction, the following conclusions can be

  drawn: while hourly wages increased for low-wage earners, some small

  negative employment effects are also identifiable. The effects on

  aspired goals, such as poverty and inequality reduction, have not

  materialised in the short run. Instead, a tendency to reduce working

  hours is found, which alleviates the desired positive impact on monthly

  income. Additionally, the level of non-compliance was substantial in the

  short run, thus drawing attention to problems when implementing such a

  wide reaching policy.'
affiliation: 'Neumark, D (Corresponding Author), UCI, Irvine, CA 92697 USA.

  Neumark, D (Corresponding Author), NBER, Cambridge, MA 02138 USA.

  Neumark, D (Corresponding Author), IZA, Bonn, Germany.

  Neumark, D (Corresponding Author), CESifo, Munich, Germany.

  Neumark, David, UCI, Irvine, CA 92697 USA.

  Neumark, David, NBER, Cambridge, MA 02138 USA.

  Neumark, David, IZA, Bonn, Germany.

  Neumark, David, CESifo, Munich, Germany.'
author: Neumark, David
author-email: dneumark@uci.edu
author_list:
- family: Neumark
  given: David
da: '2023-09-28'
doi: 10.1111/geer.12184
eissn: 1468-0475
files: []
issn: 1465-6485
journal: GERMAN ECONOMIC REVIEW
keywords: Minimum wage; evaluation; earnings; working hours; employment
keywords-plus: 'LABOR-MARKET INSTITUTIONS; JOB-SATISFACTION; EMPLOYMENT; IMPACT;

  INEQUALITY; INDUSTRY; POVERTY; REFORM; UK'
language: English
month: AUG
number: '3'
number-of-cited-references: '119'
pages: 293-329
papis_id: 24e8f65c16334310b8485a940b3a1710
ref: Neumark2019causaleffects
times-cited: '16'
title: The Causal Effects of the Minimum Wage Introduction in Germany - An Overview
type: article
unique-id: WOS:000596019200002
usage-count-last-180-days: '2'
usage-count-since-2013: '21'
volume: '20'
web-of-science-categories: Economics
year: '2019'