Abstract:
Insufficient Implementation of the Statutory Minimum Wage among Marginal Employees
In this article we examine the implementation of the statutory minimum wage of 8.50 Euro per hour for marginal employees (mini jobbers) in Germany. Using two representative data sets it can be shown that even 6 months after the law came into force about 45% of marginal employees received wages below the minimum wage threshold. Minimum wage violations are especially prevalent in low wage sectors such as the hotel and catering sector (70%) and retail (52%) and in small establishments (58%). The minimum wage improved the wage situation but the large number of violations suggests that more effective public controls are needed.
JEL Classification: J38, J70, J80