%0 Report
        %A Bauer, Thomas K.
%A Kluve, Jochen
%A Schaffner, Sandra
%A Schmidt, Christoph M.
        %T Fiscal Effects of Minimum Wages: An Analysis for Germany
        %D 2008
        %8 2008 Dec
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 3875
        %U https://www.iza.org/index.php/publications/dp3875
        %X Against the background of the current discussion on the introduction of statutory minimum wages in Germany, this paper analyzes the potential employment and fiscal effects of such a policy. Based on estimated labor demand elasticities obtained from a structural labor demand model, the empirical results imply that the introduction of minimum wages in Germany will be associated with significant employment losses that are concentrated among marginal and low- and semi-skilled full-time workers. Even though minimum wages will lead to increased public revenues from income taxes and social security benefits, they will result in a significant fiscal burden, due to increased expenditures for unemployment benefits and decreased revenues from corporate taxes.
        %K fiscal effects
%K minimum wages
%K employment
%K public budget