Employment expectations and uncertainties ahead of the new German minimum wage

In: Scottish journal of political economy: the journal of the Scottish Economic Society

Abstract

"This article analyzes announcement effects of the new statutory minimum wage on employment expectations and uncertainties in Germany. Using a difference-in-differences approach applied to the IAB Establishment Panel, employers affected by the minimum wage show an increased employment uncertainty and a 0.9% points drop in their expected employment growth. Using the same identification strategy with data from 2015, the treatment effect on actual employment growth of affected employers matches the employers' expectation. Hence, an analysis of employer expectations seems to be promising to detect employment effects of policy changes before they come into force." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))