3 ms·
This is mostly correct, but not the whole picture. They experimented with minimum wage levels in East Germany after re-unification, and found that they have bar
by MrBuddyCasino 5y ago
This is mostly correct, but not the whole picture. They experimented with minimum wage levels in East Germany after re-unification, and found that they have barely any effect on unemployment levels if they are not too high. Turns out lot of demand is not that elastic.
But agree its a very dangerous tool in the hands of politicians, and better not to have it than have it be abused.
- sagarm 5y agoI was interested in reading more about this, but the articles I found on the topic suggested the minimum wage in Germany was only instituted in 2015. Is this the natural experiment you're talking about? https://socialeurope.eu/the-minimum-wage-in-germany-five-years-on https://socialeurope.eu/the-minimum-wage-in-germany-five-yea...
- MrBuddyCasino 5y agoYes this was it - I had misremembered the time frame.