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The Minimum Wage: An Effective Means to Regain the Electorate's Confidence?

Year: 2025

Type: article

Abstract: ABSTRACT We analyse the policy feedback on the minimum wage introduction in Germany, which was the core promise of the Social Democrats in the 2013 elections. Overall, there is no positive policy effect on the electorate's preference for the Social Democrats. We find even the contrary: workers earning below the minimum wage tend to give a negative policy feedback in Eastern Germany. Our main estimation strategy exploits the variation of median wages across regions using the Kaitz index. The Difference‐in‐Differences estimations use data from a large household panel. We conclude that the Social Democrats were unsuccessful in regaining the confidence of the electorate through the introduction of the minimum wage.

Source: Scottish Journal of Political Economy

DOI: 10.1111/sjpe.70002

Authors: Natalie Herdegen, René Kalweit

Institutions: Institute for Applied Economic Research, University of Tübingen, Federal Ministry of Labour and Social Affairs

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Reduced inequalities, Decent work and economic growth

Open Access status: bronze

OpenAlex ID: W3202054121

FWCI:

Cites: 44

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Related to: 10