Evaluation of the existing minimum wage regulations in three industries (painters and varnishers, electrical trade and long-term care)

On the legal basis of the Posting of Workers Act of 1996, industry-specific minimum wages have been introduced gradually in several German industries over the last 15 years. The IAW investigates the effect of minimum wages in three industries: electrical trade, painters and varnishers and long-term care. So far, there is insufficient knowledge about the effects of minimum wages in Germany. On the basis of a comprehensive description of the industry structure, the study estimates the impact of minimum wages on three outcomes: effective wages, employment and competition intensity. Administrative data for companies and individuals and survey data are used as an empirical basis. Qualitative interviews and case studies will be used to deepen the empirical evidence and help with the interpretation of the results from the econometric analysis.

The reports [in German] can be downloaded from [here].