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Inhaltsbereich: Institut für Arbeitsmarkt- und Berufsforschung

Minimum Wage

Department

Working Group

Research task

The introduction of a country-wide legal minimum wage in Germany on the 1 January 2015 is the greatest labour market policy project since the Hartz Reforms. Apart from a small number of exceptions, from this point of time forward a minimum wage of 8.50 euros per hour will be applicable to all employees. Up to now in Germany there had been minimum wages of differing levels agreed by the representatives of management and labour in individual sectors (e.g., in the main construction trades and the roofing trade).

The introduction of the legal minimum wage can have complex effects on wages and employment. However a number of further social and economic factors may also be influenced by the minimum wage. Examples are effects on distribution, neediness, social inclusion, the productivity of enterprises, prices, competition, working conditions, and the way establishments are structured. These effects do not only depend on the level of the minimum wage but also on various other factors pertaining to the supply and demand sides of the labour market.

Against this background, the "Minimum Wage" Working Group, which was set up in April 2014, is intended to pool IAB's research capacities and expertise on the topic of the minimum wage and serve as a discussion forum for current and planned research work. In addition to this, the Working Group will aim at supporting exchange between different departments and disciplines and identify further requirements for data and research. An additional task of the Working Group is to accommodate for the strong interest that is to be expected in questions of the minimum wage by providing policy advice.

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