1. Minimum wage, qualifications and employment
Dr. Gabriele Sterkel
ver.di (united service sector union)

3. Low wages €/h in collective agreements (lowest level) (less than 7,50 €: „Poverty wage“ below 50% of national average earnings - in 2004)

4. Expected effects of a 7,50 €/h minimum wage (IAQ/SOEP 2006)
5,5 million employees (from 31 totally) with payraise
2,3 million fulltime workers
30% of all employees in East - 15% in West Germany
Two thirds women

5. What sectors concerned?
From all employees below 7,50 €/h are working in
Retail trade 18,2%
Enterprise related services 11,7%
Health- and social sector 10,4%
Gastronomy 8,7%
From all employees in the sector are working below 7,50 €
In Gastronomy 50,6%
In enterprise related services 29,5%
In retail trade 28%
In health- and social sector 12,2%

6. Macroeconomic effects : rise of employment!
Introduction of a minimum wage of 7,50 €/h will bring rise of employment
short- and middle-term: workers
longterm: workers
(Macroeconomic simulation study including effects of demand with higher wages, Klaus Bartsch)

7. UK: Gowth of minimum wage and of employment
Increase of statutory
minimum wage of 49%
Decrease of unemployment rate of about 21%

8. Real wage development in % in comparison with previous year

10. German export surplus

12. Wage share of national income
Upward trend
does not reach employees

13. Wage costs/h in private service sector in 2006

14. rapid growth of german low wage sector
- already every 5th employee concerned -

15. Low wage sector in Germany is growing faster than in any other country
Low wage sector in Germany is growing faster than in any other country! (IAQ/SOEP )
22% of all employees in Germany have been working in the low wage sector in 2006
1995: 15% (increase of 43%)
Low wage: 2/3 of median wage (WestG 6,89 €; EastG 4,86 €)
International comparison: GB 22%; USA 25%
Structure:
70% women
15% full time

16. Qualification sares in the low wage sector

17. Qualification in the german low wage sector increasing (IAQ/SOEP 2008-1)
¾ of all low wage employees are formally qualified
Professional or academic qualification
Between 1995 and 2006 the share of low qualified in the low wage sector decreased about 7%

18. Wage per hour in german low wage sector is decreasing (IAQ/SOEP 2008-1)
Downward differenciation of wages
Increase of wages below 5 €
From 1,5 million workers in 2004 to 1,9 million in 2006
Growing difference between East and West

19. WSI

20. Minimum wages in % of national median and average wages (WSI 2006)
in % of median wage
in % of average wage
Frankreich
62%
47%
Luxemburg
53%
41%
Belgien
51%
40%
Irland
48%
52%
Ungarn
39%
Großbritannien
45%
35%
Slowakei
36%
Niederlande
44%*
46%
Portugal
Polen
42%*
37%
Tschechien
Griechenland
39%*
Spanien