Germany: a survey by the Hans-Böckler union foundation found that the introduction of minimum wage shouldn’t have a negative impact on the employment market

About 2 weeks to the planned adoption by the Bundestag, on July 4, of the bill on the introduction of statutory universal minimum wage amounting to €8.5/hour, the Hans-Böckler foundation released, on Monday, June 23, a survey carried out on its behalf by the Institute for Work, Skills and Training (IAQ), University of Duisburg-Essen. It discredits the arguments put forward by those against the law, who still account for a large part. In this survey, which summarizes all the latest studies on the subject at national and international level, the researchers conclude that introducing minimum wage doesn’t lead to job cuts. However, they also say that, in Germany, it won’t be enough to solve the issue of the low-wage sector. Sectoral collective agreements need to be strengthened further.
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A lot of German economists put international research aside. Gerhard Bosch and Claudio Weinkopf, respectively Director and Deputy Director of theInstitute for Work, Skills and Training (IAQ), University of Duisburg-Essen, and authors of the study, claim that the introduction of statutory minimum wage throughout Germany as of January 1, 2015 (see article No. 8299) is “one of the most important social reform since the war ended,” given the erosion of the collective agreements system. It should co

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