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Nicole Horschel / Hagen Lesch IW-Trends No. 4 25. December 2011 Fiscal Costs of a Minimum Wage
Fiscal Costs of a Minimum Wage
Nicole Horschel / Hagen Lesch IW-Trends No. 4 25. December 2011

Fiscal Costs of a Minimum Wage

German Economic Institute (IW) German Economic Institute (IW)

Calculations based on the IW-Simulation Model suggest that a minimum wage of 8.50 euro would save the government 5 billion euro if it had no negative effects on the labor market. If the minimum wage, however, leads to significant job losses among low-skilled workers it would burden taxpayers with an extra 0.8 billion euro. If the job losses include a sizable number of full-time workers the extra tax burden will rise to 6.6 billion euro. In the long run the negative effects on the fiscal balance would presumably grow because companies would invest less and the human capital of the unemployed would degenerate.

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Proliferation of works councils and the desire for interest representation
Oliver Stettes IW-Report No. 1 19. January 2025

Proliferation of works councils and the desire for interest representation

Works councils exist in 7 per cent of the German establishments with five and more employees. The coverage rate has fallen significantly in the long run. Non-existence of works councils is, however, not equivalent to a lack of participation by the employees.  ...

IW

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Helena Bach / Carolin Denise Fulda IW-Trends No. 3 23. September 2024

Collectively Agreed Wages as an Instrument for Recruiting Skilled Labour?

Companies are increasingly focussing their attention on the recruitment of skilled workers and thus facing the growing challenge of making their job advertisements as attractive as possible.

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