The minimum wage law in Germany: A generally positive outlook, but some major issues of application

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2020

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Odile Chagny et al., « The minimum wage law in Germany: A generally positive outlook, but some major issues of application », La Revue de l'Ires, ID : 10670/1.511c2d...


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The interprofessional legal minimum wage was not introduced in Germany until 2015. It marked a major step in recognizing the inability of the system of collective bargaining to continue to guarantee, on its own, decent working conditions for many employees. The outlook is broadly positive: the minimum wage has helped to limit wage inequality, temporarily at least; it has benefited many employees; and price rises of certain goods and services turned out to be innocuous, against a general backdrop of moderate inflation. The issue of circumvention of the law is, however, far from resolved. While the minimum wage has not in any event had a significant negative impact on jobs, it has failed to help a great many workers to get out of poverty, due to too few hours worked.

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