The Effects of Germany’s Statutory Minimum Wage on Employment and Welfare Dependency

2019 ◽  
Vol 20 (3) ◽  
pp. 330-355 ◽  
Author(s):  
Sebastian Schmitz
Keyword(s):  
Minimum Wage ◽  
Welfare Recipients ◽  
County Level ◽  
Welfare Dependency ◽  
Welfare Receipt ◽  
Difference In Differences ◽  
Regular Employment ◽  
Negative Effect ◽  
Marginal Employment ◽  
The Difference

AbstractIn January 2015, Germany introduced a federal, statutory minimum wage of 8.50 € per hour. This study evaluates the effects of this policy on regular and marginal employment and on welfare dependency. Based on the county-level administrative data, this study uses the difference-in-differences technique, exploiting regional variation in the bite of the minimum wage, i.e., the county-specific share of employees paid less than 8.50 € before the introduction of the minimum wage. The minimum wage had a considerable negative effect on marginal employment. There is also some indication that regular employment was slightly reduced. Concerning welfare dependency, the minimum wage reduced the number of working welfare recipients, with some indication that about one half of them left welfare receipt due to the minimum wage.

scholarly journals The German Statutory Minimum Wage and Its Effects on Regional Employment and Unemployment

2020 ◽  
Vol 240 (2-3) ◽  
pp. 295-319 ◽  
Author(s):  
Holger Bonin ◽  
Ingo E. Isphording ◽  
Annabelle Krause-Pilatus ◽  
Andreas Lichter ◽  
Nico Pestel ◽  
...  
Keyword(s):  
Labor Markets ◽  
Minimum Wage ◽  
Social Insurance ◽  
Difference In Differences ◽  
Regional Labor Markets ◽  
Regional Labor ◽  
Regular Employment ◽  
Negative Effect ◽  
Proportional Increase ◽  
Wage Floor

AbstractThis paper studies the effects of the introduction of Germany’s statutory minimum wage in 2015 on employment and unemployment on the level of regional labor markets. Using variation in the regional exposure to the new wage floor, we employ a difference-in-differences approach that compares the evolution of employment and unemployment between regions with varying minimum wage bites. Overall, we find no statistically significant effect of the introduction of the German minimum wage on regular employment subject to social insurance, but a statistically significant negative effect on marginal employment. The reduction is not accompanied by a proportional increase in unemployment.

scholarly journals PENGARUH PEMERIKSAAN PAJAK TERHADAP KEPATUHAN WAJIB PAJAK BADAN DI INDONESIA

2019 ◽  
Vol 1 (1) ◽  
pp. 21
Author(s):  
Arif Nugrahanto ◽  
Soupani Andri Nasution
Keyword(s):  
Interaction Coefficient ◽  
P Value ◽  
Difference In Differences ◽  
Audit Risk ◽  
Dummy Variable ◽  
Directorate General ◽  
Negative Effect ◽  
Independent Variable ◽  
The Difference ◽  
Positive Effect

Several studies related to the effect of audits on taxpayer compliance provide different conclusions. Bergman and Nevarez (2006) find the fact that tax audits negatively affect compliance. In contrast, Gemmel and Ratto (2012) concluded that the audit had a negative effect on the group of taxpayers who obeyed, and at the same time had a positive effect on the group of taxpayers who did not comply. Given the different conclusions, the researcher is interested in testing in the Indonesian context by using the SIDJP data from the Directorate General of Tax for the period 2009-2013.The difference-in-differences approach model implemented in this study adopts Norman Gemmell and Marissa Ratto (2012). The dependent variable is income tax while the independent variable is the dummy variable for group, time and type of audits. Regression results show that the interaction coefficient between the dummy group variable and the time dummy variable which is the difference-in-differences coefficient, has a p-value that is statistically insignificant to reject null hypothesis. It tells that there is no difference in the level of compliance between the audited (corporate) taxpayer and non-audited (corporate) taxpayers. No impact on the level of compliance of taxpayers may come from several reasons, including the small coverage of the tax audits, the existence of the bomb crater effect, and the results of the type of updating audit risk.

Transgenerational Succession and R&D Investment: A Myopic Loss Aversion Perspective

2021 ◽  
pp. 104225872110384
Author(s):  
Weiwen Li ◽  
Garry D. Bruton ◽  
Xinchun Li ◽  
Shuang Wang
Keyword(s):  
Loss Aversion ◽  
Family Firms ◽  
Empirical Support ◽  
Leadership Transition ◽  
Short Term ◽  
Difference In Differences ◽  
Myopic Loss Aversion ◽  
Negative Effect ◽  
The Difference ◽  
D Investment

A transgenerational leadership transition is one of the most critical events in the life cycle of family firms. Drawing upon the myopic loss aversion (MLA) perspective, we argue that outgoing leaders and other company stakeholders tend to closely watch the later-generation successors immediately after a transgenerational succession, and thus the successors will focus on short-term developments and invest less in R&D activities. Employing the difference-in-differences approach, we find empirical support for our argument that transgenerational succession decreases R&D intensity. The negative effect of transgenerational succession is more pronounced when the later-generation successors suffer from a higher level of MLA.

Did the German Minimum Wage Reform Influence (Un)employment Growth in 2015? Evidence from Regional Data

2019 ◽  
Vol 20 (3) ◽  
pp. 356-381 ◽  
Author(s):  
Alfred Garloff
Keyword(s):  
Growth Rate ◽  
Minimum Wage ◽  
Employment Growth ◽  
Difference In Differences ◽  
Lower Growth ◽  
Total Employment ◽  
Negative Results ◽  
Regular Employment ◽  
Lower Growth Rate ◽  
The Relationship

Abstract Using the variation across space, age and sex and the variation across space and sectors, we analyse the relationship between the minimum wage and (un)employment growth in 2015. We use difference-in-differences specifications and instrument the bite of the minimum wage by the lagged bite. The results provide stable evidence that a higher minimum wage bite is related to a higher growth rate of regular employment. We also find stable evidence that a higher minimum wage bite is related to a lower growth rate of marginal employment. These results are consistent with a transformation of marginal to regular jobs. The relationship to total employment is slightly positive in our preferred specification but insignificant or negative in others. For unemployment, we find a positive relationship between the bite of the minimum wage and unemployment growth in our preferred specification but insignificant or negative results in others.

scholarly journals Using Occupations to Evaluate the Employment Effects of the German Minimum Wage

2020 ◽  
Vol 240 (2-3) ◽  
pp. 269-294 ◽  
Author(s):  
Martin Friedrich
Keyword(s):  
Minimum Wage ◽  
West Germany ◽  
Difference In Differences ◽  
Regional Effect ◽  
Employment Effects ◽  
Regular Employment ◽  
Short Run ◽  
Wage Floor ◽  
Effect Heterogeneity ◽  
The Impact

AbstractThis paper evaluates the short to medium run employment effects of the 2015 introduction of a statutory minimum wage in Germany. The effect of the policy is recovered from variation in the bite of the minimum wage across occupations using a difference-in-differences estimator. The analysis reveals that the reform only had a small impact on employment and highlights the importance of regional effect heterogeneity. In East Germany, marginal employment decreased by about 18,000 jobs in the short run and 52,000 jobs in the medium run, respectively, due to the minimum wage. In West Germany, no negative employment effects are detectable, but regular employment increased temporarily because of the reform. The medium run estimates include the impact of the first marginal increase of the wage floor from €8.50 to €8.84 in 2017.

scholarly journals Polls and the Pandemic: Estimating the Electoral Effects of a SARS-CoV-2 Outbreak

2020 ◽  
pp. 147892992097918
Author(s):  
Indraneel Sircar
Keyword(s):  
Statistical Power ◽  
Parliamentary Election ◽  
County Level ◽  
The Novel ◽  
Infection Rates ◽  
Difference In Differences ◽  
Electoral Impact ◽  
The Difference ◽  
Using Data ◽  
Novel Coronavirus

The novel coronavirus (SARS-CoV-2) and the associated Coronavirus Disease 2019 (COVID-19) pandemic have had far-reaching health, economic, social and political impacts. The latter is the focus of this research note, which proposes using a difference-in-differences approach to estimate the electoral impact of reported SARS-CoV-2 infection rates. The approach is illustrated using data from the 2020 Croatian parliamentary election. The outcomes of interest are the vote shares for the dominant Croatian Democratic Union party, as well as the turnout. The analysis concludes that there is no evidence that reported county-level infection rates affected Croatian Democratic Union support or turnout. However, results using this approach may be affected by the statistical power of the analysis, issues related to causal identification and reliability of infection rate measures. Nonetheless, the difference-in-differences approach can potentially be applied in contexts around the world to estimate the electoral impact of reported SARS-CoV-2 infection rates.

scholarly journals Can the establishment of National Key Ecological Functional Zones improve air quality?: An empirical study from China

PLoS ONE ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. e0246257
Author(s):  
Guangqin Li ◽  
Lingyu Li ◽  
Xing Li ◽  
Yu Chen
Keyword(s):  
Air Quality ◽  
Fine Particulate Matter ◽  
Utilization Efficiency ◽  
County Level ◽  
Economic Data ◽  
Difference In Differences ◽  
Factors Affecting ◽  
Fine Particulate ◽  
Functional Zones ◽  
The Difference

Drawing on fine particulate matter (PM2.5) from satellite raster data and matching with the county-level socio-economic data from 2008 to 2015 in China, this paper investigates the impacts of the establishment of National Key Ecological Functional Zones (NKEFZ) on environmental quality by employing the difference-in-differences method, which was stablished in June 2011. The results indicate that the establishment of the NKEFZ significantly decreased the concentration values of PM2.5, a drop of about 20% during the study period, after the paper controls for other factors affecting air quality. The robustness tests using the maximum and medium concentration values of PM2.5 show similar results. Through further analysis, the paper finds that the establishment of NKEFZ can improve the ecological utilization efficiency of land.

The Disclosure of Quality on Tourism Performance: Evidence from Top Tourist Cities in China

2020 ◽  
pp. 004728752095454
Author(s):  
Yanyan Gao ◽  
Wei Su
Keyword(s):  
County Level ◽  
Difference In Differences ◽  
Tourism Promotion ◽  
City Tourism ◽  
Quality Disclosure ◽  
Heterogeneity Analysis ◽  
The Difference ◽  
Tourism Economy ◽  
The Impact ◽  
The City

This article takes advantage of the designation of top tourist cities in China to estimate the impact of quality disclosure on the city tourism economy. According to theories regarding quality disclosure and certification, we develop a tourism promotion hypothesis for the designation, which is then tested with panel data from China’s 284 prefectural-level cities between 2000 and 2015. The difference-in-differences approach shows that gaining the designation increases both domestic and inbound tourism revenues, which is robust to various specifications. Heterogeneity analysis shows that the tourism promotion effect only persists for about three years, decreases over time, is smaller in developed areas, and is less salient for multiple or county-level designations.

scholarly journals Income Inequality in Indonesia: Panel Data of 34 Provinces 2014-2016

2018 ◽  
Vol 73 ◽  
pp. 10003
Author(s):  
Rofiuddin Mohammad ◽  
Firmansyah
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Income Inequality ◽  
Minimum Wage ◽  
Global Level ◽  
Panel Data Regression ◽  
Data Regression ◽  
Negative Effect ◽  
The Difference ◽  
High Level

Income inequality is the difference in the ability of people to have goods or services, and more broadly, it is the problem of community welfare. Income inequality can be measured at regional, national and global level. Income inequality in Indonesia,, which representing by Gini index, is still relatively high, even though the number tends to decline. The high level of income inequality is influenced by various factors. This study aims to analyze the influence of economic growth, population and provincial minimum wage toward income inequality in Indonesia. By applying a fixed-effect of panel data regression model of the 34 provinces along 2014-2016, the study finds that economic growth and population do not affect the income inequality, while provincial minimum wage has the negative effect.

Evaluation of the impact of public investment programs on social and economic performance of territories

2019 ◽  
pp. 109-123
Author(s):  
I. E. Limonov ◽  
M. V. Nesena
Keyword(s):  
Bayesian Modeling ◽  
Positive Impact ◽  
Public Investment ◽  
Difference In Differences ◽  
The Public ◽  
Export Activity ◽  
Regional Investment ◽  
The Difference ◽  
The Impact ◽  
Development Institution

The purpose of this study is to evaluate the impact of public investment programs on the socio-economic development of territories. As a case, the federal target programs for the development of regions and investment programs of the financial development institution — Vnesheconombank, designed to solve the problems of regional development are considered. The impact of the public interventions were evaluated by the “difference in differences” method using Bayesian modeling. The results of the evaluation suggest the positive impact of federal target programs on the total factor productivity of regions and on innovation; and that regional investment programs of Vnesheconombank are improving the export activity. All of the investments considered are likely to have contributed to the reduction of unemployment, but their implementation has been accompanied by an increase in social inequality.

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