Potential Effects of a Statutory Minimum Wage on the Gender Pay Gap A Simulation-Based Study for Germany

Abstract

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Robots and the gender pay gap in Europe

“…2 Given that in many countries and industries, we have seen increases in robotization of more than 10 percent, this e↵ect is sizable. To put it in perspective, the introduction of the national minimum wage led to a fall in the raw gender pay gap of about 2 percent (see, for example, Robinson 2002 for evidence from the UK; Boll et al 2015 for evidence from Germany). In addition, the e↵ect we identified is larger than that of many family-friendly policies in European countries, where the evidence on their e↵ectiveness for reducing the pay gap is mixed (see review in Olivetti and Petrongolo 2017).…”

Probing the Effects of the Australian System of Minimum Wages on the Gender Wage Gap

“…3 Dex et al (2000) and Boll et al (2015) produce ex ante estimates of the effects of the introduction of a minimum wage on the gender wage gap in the UK and Germany, respectively. National Economic Council et al (2014) similarly produces estimates of the effects of a prospective increase in the federal minimum wage on the gender wage gap in the US.…”

“…Several international studies indeed present simulations or report evidence showing minimum wages reduce the gender wage gap by elevating the 'sticky floor' (Dex et al 2000, Robinson 2005, Hallward-Driemeier et al 2015, Boll et al 2015. More generally, Kahn (2015) argues that labour market institutions that act to increase wage compression also, as a by-product, tend to reduce gender wage gaps.…”

Robots and the Gender Pay Gap in Europe

“…2 Given that in many countries and industries, we have seen increases in robotization of more than 10 percent, this e↵ect is sizable. To put it in perspective, the introduction of the national minimum wage led to a fall in the raw gender pay gap of about 2 percent (see, for example, Robinson 2002 for evidence from the UK; Boll et al 2015 for evidence from Germany). In addition, the e↵ect we identified is larger than that of many family-friendly policies in European countries, where the evidence on their e↵ectiveness for reducing the pay gap is mixed (see review in Olivetti and Petrongolo 2017).…”