Article in Journal
Indirect Employment Effects of Branch-Specific Minimum Wages
Ulrich van Suntum
ifo Institut, München, 2014
ifo Schnelldienst, 2014, 67, Nr. 03, 39-44
ifo Institut, München, 2014
ifo Schnelldienst, 2014, 67, Nr. 03, 39-44
![](https://www.ifo.de/DocImg/ifosd_2014_03_3.jpg?c=1689237095)
Empirical studies often find no negative employment effects on branch-related minimum wages. However, Ulrich van Suntum, University of Münster, shows that the monitoring of trends in employment in the respective minimum wage sectors is insufficient. Inelastic demand inevitably leads to loss-of-purchasing-power effects and corresponding employment losses in other sectors that are not affected by minimum wages.
JEL Classification: J310, J210, J230