The Nationwide Minimum Wage and Companies’ Reaction to It – Results of a Special Poll Featuring in the Ifo Business Survey

In November all of the firms that participate in the Ifo Institute’s monthly business survey, with the exception of construction firms, were asked whether they will be affected by the minimum wage regulation, and if so, what measures they will take in response. The results show that service providers and retailers are more heavily impacted by the minimum wage than manufacturers and wholesalers. In retailing the main responses were cited as shorter working times and staff cutbacks. Service providers, by contrast, plan to increase prices instead.