TY  - RPRT
        AU  - Bauer, Thomas K.
AU  - Kluve, Jochen
AU  - Schaffner, Sandra
AU  - Schmidt, Christoph M.
        TI  - Fiscal Effects of Minimum Wages: An Analysis for Germany
        PY  - 2008/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 3875
        UR  - https://www.iza.org/index.php/publications/dp3875
        AB  - 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.
        KW  - fiscal effects
KW  - minimum wages
KW  - employment
KW  - public budget
        ER  -