the work of The minimum wage Commission is difficult: it Sets the minimum wage too low, he remains ineffective, the financial Situation of low-income earners is improved. It sets the minimum wage too high, jobs are at risk, because some companies can’t afford the higher wages. Is started of the minimum wage, with Transition periods and exemptions in early 2015 with a € 8.50. 1. January 2019, he will be increased on 9,19 euros. Whether that will be the correct height? Four insights from four years of minimum wage

Summary: The minimum wage has hardly cost jobs
The minimum wage has only a few people from the poverty brought
The minimum wage is too often
bypassed For a much higher minimum wage, it is too early
The minimum wage has hardly cost jobs

Many Economists had warned of a legal minimum wage. They assumed that it would destroy jobs. Up to 900,000 Jobs would be at risk, fearing the ifo Institute prior to the introduction of the minimum wage. But so bad it didn’t come Far.

Between 40,000 and 60,000 jobs could be lost as a result of the minimum wage, or not only, has the Institute for labour market and occupational research (IAB), of all places, the research Institute of the Federal employment Agency. Even the most pessimistic studies come to no more than 80,000 lost Jobs. Some Economists and Economists pointed out, however, that the number would have been without the good economy of the past few years might be higher. And what happens Vice versa in the case of an economic crisis, cannot be predicted.

The IAB is that mini-jobs were lost. And of the employees, their job is no longer reported, only very few unemployed. The researchers take this as evidence that the workers were not from the income of the dependent, but something to be earned, for example, as students or pensioners.

Also often their Job Employees in Eastern Germany, where wages are lower and occupy the minimum wage is therefore more of an incentive to emphasize a point or not new have lost. It shows also that the minimum wage makes employers and the employer, to allow for easy Work of machines than of people make – that it speeds up the automation. Alexandra Fedorets by the German Institute for economic research (DIW) found in a yet unpublished study. “Cashiers have to be replaced because of the minimum wage, for example through self-service checkouts,” says Fedorets.

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The minimum wage is only a few people brought out of poverty

so Far, the minimum wage has harmed relatively little, but he has brought something, too? Looking at the hourly wages of people with low income, speaks at the first glance, a lot Of it: from 2014 to 2016, the hourly wage has increased ten percent with the lowest income in Germany, to fifteen per cent, in the previous years, only about one percent, the DIW calculated. Economist Alexandra Fedorets is sure that the minimum wage is the cause: “to recognize the fact that the low wages have increased, in particular in those regions where a disproportionately high number of people have no less than earned 8,50 euros per hour.”

Fedorets advises, however, to look only at hourly wages. Because while the increased for the bottom fifth of the income groups between 2014 and 2015 to six per cent, increased the monthly wages by only two percent, as data from the German Socio-economic panel study (SOEP) show. The explanation for this: According to the Federal statistical office, 41 per cent of businesses, the minimum wage has reduced the working hours. Some workers don’t seem to have reduced, even voluntarily, in order not to exceed certain income limits, which have an impact for tax purposes, for example for 450-Euro-Jobs.

The IAB is working with other data and methods, and comes to the conclusion that the monthly wages have risen by seven to twelve percent. Mario Bossler from the IAB draws a “code of positive conclusion” to four years of minimum wage. Behavior, as: “The minimum wage has only brought a few people from social need.” Both the number of people at risk of poverty, as well as the number of employees, the need to increase their salary with Hartz IV, was hardly fallen.

Bossler, according to which, among other things, the fact is that the minimum wage had been introduced at a height, in the case of a single full-time worker am no longer on social services. “Many Workers with minimum wage but work part-time or also need to Finance their family,” said Bossler.

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The minimum wage is too often

bypassed another reason why the minimum wage has on poverty can hardly be reduced: Many employers do not keep to him. A study by the DIW has shown that 1.8 million people have a claim on the minimum wage, received it in the year 2016. The actual number of hours worked as a basis, even got 2.6 million Employees less than the minimum wage and legal exceptions, such as trainees and self-employed persons are not attributed once. Very often “mini-jobbers” that employees receive from small firms, and foreigners less than the minimum wage. Women are affected more often than men and East German rather than West German.

violations of the minimum wage fights of the customs. In the previous year, the authority has initiated more than 2,500 procedures, the most of trades in the construction and catering. “It is for employers to bypass the minimum wage,” says Alexandra Fedorets from the DIW. On construction sites and in Restaurants, the records of the working time are not available often, if the inch comes over, but need to be examined, for example, only tax advisers. The fines are also low. And employees who have to get little salary, would have to sue for the sums independently instead of the authority of the drink.

the minimum wage is a better implementation of beats Fedorets to take the example of the United Kingdom. There, convicted companies would come to a public “black list” on the Internet. Even more of a Fedorets find positive incentives. A “white list” of companies that cooperate voluntarily and in a public procurement may participate. Another Option is a Fairpay-seal, with the Restaurants could advertise.

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For a significantly higher minimum wage, it is too early

in the Meantime, numerous prominent SPD politicians are calling for a minimum wage of twelve euros, the trade Union Federation DGB, supports this claim. “The higher the minimum wage, the more attractive it is to bypass him,” warns Alexandra Fedorets from the DIW. And if many companies are not held to the minimum wage, the damage to law-abiding company, the greater.

Mario Bossler from the IAB holds twelve euros in the West is feasible, feared in the East, however, job losses. The Regional differences in minimum wages would be a solution, don’t be politically wanted. In addition, he noted that “as Long as the current minimum wage is often not adhered to, it should be a priority to enforce, rather than to increase it.”

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