Minimum Wages as a Barrier to Entry Evidence from Germany # 329

  • Ronald Bachmann Thomas K. Bauer Hanna Kröger
  • Published 2012

Abstract

This study analyses employers‘ support for the introduction of industry-specifi c minimum wages as a cost-raising strategy in order to deter market entry. Using a unique data set consisting of 800 fi rms in the German service sector, we fi nd some evidence that high-productivity employers support minimum wages. We further show that minimum wage support is… (More)

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