Project Details
Labour Market Regulations
Subject Area
Economic Policy, Applied Economics
Term
since 2024
Project identifier
Deutsche Forschungsgemeinschaft (DFG) - Project number 518302089
This research project uses randomized audits and natural experiments to study how firms respond to labor market regulations and their enforcement. The project examines whether firm responses hinder or facilitate improvements in working conditions, which, in turn, could either amplify or diminish the role of labor market regulations in increasing labor supply (and reducing scarcity). The project is composed of three parts. The first part analyzes non-compliance with minimum wage regulations in Germany. In addition to characterizing the prevalence of non-compliance across firms, industries, and regions, the study evaluates enforcement activities' direct and indirect effects on wages and (formal) employment. The second part examines within-firm responses after a massive minimum wage reform in Montenegro, studying its impact on prices, profits, contractual working hours, and shifts into informality. The third part studies the effect of extended collective bargaining coverage on the quality of care as well as on labor supply, demand and, thus, on labor scarcity in Germany's long-term care sector.
DFG Programme
Research Units
International Connection
USA
Cooperation Partner
Professor Simon Jäger, Ph.D.