Do minimum wages increase job satisfaction? Micro data evidence from the new German minimum wage
Bossler, Mario ; Broszeit, Sandra
Institut für Arbeitsmarkt- und Berufsforschung, Nürnberg
IAB - Nürnberg
2016
20 p.
employees attitude ; job satisfaction ; minimum wage
IAB-Discussion Paper
15/2016
Wages and wage payment systems
English
Bibliogr.
"On 1 January 2015 a new statutory minimum wage of EURO 8.50 per hour of work was introduced in Germany. Using a difference-in-differences approach, we estimate effects on worker-level outcomes of continuing employees. The results reveal a meaningful absolute increase in the affected workers' pay satisfaction. The increase in job satisfaction is modest and predominantly driven by changes in pay satisfaction implying only a small effect on all other dimensions of job satisfaction. Moreover, effects from the minimum wage on work engagement and turnover intention are virtually zero."
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