Fiscal Effects of Minimum Wages: An Analysis for Germany

  title={Fiscal Effects of Minimum Wages: An Analysis for Germany},
  author={T. Bauer and Jochen Kluve and S. Schaffner and C. Schmidt},
  journal={ERN: Labor Markets (Topic)}
Against the background of the current discussion on the introduction of statutory minimum wages in Germany, this paper analyzes the potential employment and fiscal effects of such a policy. Based on estimated labor demand elasticities obtained from a structural labor demand model, the empirical results imply that the introduction of minimum wages in Germany will be associated with significant employment losses that are concentrated among marginal and low- and semi-skilled full-time workers… Expand