TY  - RPRT
        AU  - Bachmann, Ronald
AU  - Bauer, Thomas K.
AU  - Kroeger, Hanna
        TI  - Minimum Wages as a Barrier to Entry: Evidence from Germany
        PY  - 2012/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6484
        UR  - https://www.iza.org/index.php/publications/dp6484
        AB  - This study analyses employers' support for the introduction of industry-specific minimum wages as a cost-raising strategy in order to deter market entry. Using a unique data set consisting of 800 firms in the German service sector, we find some evidence that high-productivity employers support minimum wages. We further show that minimum wage support is higher in industries and regions with low barriers to entry. This is particularly the case in East Germany, where the perceived threat of low-wage competition from Central and Eastern European Countries is relatively high. In addition, firms paying collectively agreed wages are more strongly in favour of minimum wages if union coverage is low and the mark-up of union wage rates is high.
        KW  - service sector
KW  - product market competition
KW  - minimum wage
        ER  -