The effects of the 2022 minimum wage increase on wages, wage distribution and working hours.
A current study by the IAW in cooperation with RWI – Leibniz Institute for Economic Research on behalf of the Minimum Wage Commission examines the effects of the minimum wage increase to 12 EUR in 2022 on wages, wage distribution and working hours. Using various methods, the study concludes that the substantial increase in the minimum wage significantly increased both hourly and monthly earnings and led to a reduction in wage inequality in the lower wage segment. The results also indicate that the exceptionally high minimum wage increase led to evasive reactions in the form of reductions in working hours and a decline in the overall volume of work in the economy. The study, together with reports from other economic research institutes, served as the basis for the Fifth Report on the effects of the statutory minimum wage by the Minimum Wage Commission.
A recent IAW study commissioned by the Gesamtverband der Personaldienstleister e.V. (GVP) examines wage differences between employees in and outside of temporary work based on the 2023 earnings structure survey. This initially shows unadjusted wage gaps at the expense of temporary work - both in monthly earnings and in hourly pay. However, if a comparison is made between similar employees in and outside temporary employment, the difference in monthly wages is significantly smaller. In the case of hourly wages, there is no longer a wage gap when taking into account the different characteristics of employees in and outside temporary employment if the statistical twin method (matching) is used. When regression models are used, there is even an inverse wage gap in payment per hour in favor of temporary work.
Workplaces must be adapted to the needs of older employees.
In order to enable people to work longer and avoid unemployment, jobs and labour promotion must be adapted to the needs of older employees and the unemployed. To this end, for example, health promotion should be improved within the framework of SGB II (citizens' benefits) and SGB III (labour promotion). There should be labour market programmes specifically for older employees in order to avoid or at least shorten periods of unemployment in the transition to retirement.
At the 53rd top-level meeting on the training situation, the members of the Baden-Württemberg Training Alliance in Stuttgart discussed the current challenges on the training market in the state. The IAW short report ‘Company-based training in Baden-Württemberg 2023’ (in German) was published in connection with this.
Potential in the transition area: opportunities for young talent and companies.
A recent short study by the IMPULS Foundation of the VDMA examines the potential of the transitional area between school and work to alleviate the shortage of skilled labour in mechanical and plant engineering. The analysis carried out by the IAW shows that many young people in the transitional area are basically suitable for training. Targeted support and awareness-raising could attract them to careers in mechanical and plant engineering.
