The Employment Effect of Industry - Specific , Collectively - Bargained Minimum Wages
نویسندگان
چکیده
This paper estimates the employment eff ects of industry-specifi c, collectively-bargained minimum wages in Germany for two occupations associated with the construction sector. I propose a truly exogenous control group in contrast to the control group design used in the literature. Further, a diff erence-in-diff erences-in-diff erences estimator is presented as a robustness test for occupation-specifi c and/or industry-specifi c, timevarying, unobserved heterogeneity. I do not fi nd a signifi cantly negative employment eff ect, even though the minimum wage is binding in (East) Germany. This result can be explained by substitution eff ects, noncompliance and models of monopsonic competition. JEL Classifi cation: J38, J42
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