The minimum wage
The legal minimum wage to the workers, the sellers of their labor guarantee a minimum income with which they can perform without additional state aid of which a decent life. A relative with a surplus of labor possible wage dumping could thus be prevented, argue the proponents of a minimum wage . Unreasonably low wages, which are no longer enough to live in Germany, unfortunately, not mere theory. Especially in the classic low-wage sector, but not only there, one hears again and again by almost immoral looking wages. In Germany, wages are paid in 670 occupations of less than six euros per hour. The findings of a Overview of the Federal Economics Ministry show that was created at the request of the CDU / CSU parliamentary group. The nation's lowest hourly rate is paid accordingly in Saxony:
unskilled workers in horticulture have all the 2.74 euros per hour. Cut into Thuringia hairdressers to their customers for an hourly wage of 3.18 € hair. Guards in Saxony-Anhalt work for € 3.91 per hour, in Mecklenburg-Vorpommern at night for four euros and in Schleswig-Holstein for just 4.74 €.
can create a minimum wage as remedial, or does it only leads to greater unemployment, as the opponents of a minimum wage of CDU / CSU, FDP and the employers' association will always claim?
On a free labor market wages, so the price just like every other free market, but by the free interplay of supply (A A) and demand (A N ) regulated. The resulting equilibrium price of labor is the wage (Wr 0).
If the minimum wage below the equilibrium price, it remains ineffective. If he did it, so is less labor-power (A1) demand is offered as (A3). The result: The result is an excess supply of labor (path A1-A3), which is nothing other means than unemployment. The case seems clear. Minimum wage help the affected workers not as desired, because once they are above the market equilibrium therefore, the wage level who is worthy of the job market anyway, they merely cause higher unemployment and thus harm only.
But the labor market has a special feature which distinguishes it fundamentally from other markets. The workers are selling their labor force rely for their existence, as they very often have no real alternative, such as the path to independence, but this requires sufficient capital, it is often precisely what is lacking. These alternatives has serious consequences for the workers employed by falling wages (market prices), not withdraw from the market, do not reduce their labor supply also. What would they live? At wages that are approaching the poverty or fall even lower, the affected workers forced their labor supply to increase even so it is enough to live by seeking to about several different work or extra work (overtime) pay no wages.
It follows a special course of the labor supply curve (A A). In addition to the regular wage ( Wr 3), providing further equilibrium prices, lower wages ( Wr Wr 2 and 1 correspond). In particular, the wage Wr 1 is at an extremely low level, well below the subsistence level. The introduction of minimum wages M1 or M2, for example, a market equilibrium in the higher wages Wr Wr 2 or 3 can be achieved without the risk of unemployment . Only when a minimum wage above the market equilibrium M3 in
Wr 3 would oversupply of labor and thus caused unemployment.
of completeness sake it should be mentioned: The curve also contains an equilibrium price, which increased wage (Wr 4), applies. This stems from the fact that the willingness to work, at a certain wage level, which here is just above M3, may decrease again. The income is then ready so high that additional work does not simply worth more.
The minimum wage seems to me that is probably yet to be a very good idea to fundamental structural disadvantages of the workers in the labor market to compensate, especially if unions are weak and not impose a reasonable rate contracts.
An alternative the statutory minimum wage would http://www.cesifo-group.de/portal/page/portal/ifoContent/N/publ/Zeitschriften/zs-sd/zs-sd-abstracts-container/IFO_SCHNELLDIENST_2006/ifosd_02_2006_kombilohn a combined wage model (. pdf ) or better yet, a negative income tax ( http://www.archiv-grundeinkommen.de/friedman/kap12.htm ), as proposed by Milton Friedman in his book "Capitalism and Freedom".
Milton Friedman ( Wikipedia )
thereby secure a minimum income would also workers save it from unleashing its work force at lower wages than any humanly acceptable amount. The social assistance under a welfare State, the effect of a minimum wage. However, it is often tied to degrading conditions. The individual shall be such as practically forced to accept any job, or face a reduction or social assistance. Due to the lack of opportunity for a job also once refused if it appears unreasonable, the employee is in fact not free. In the case of Germany under the Hartz IV - Legislation introduced one-euro jobs "that is particularly clear. The similarity of these "working conditions" for example, to debt slavery of the ancient world ( http://de.wikipedia.org/wiki/Sklaverei ) is probably not accidental. Then, too, so not all slaves were treated very bad necessarily, but could not yet determine their own lives, they were just slaves. Meanwhile, in Germany, even on the introduction of modern "slave markets" thinking public ( http://www.focus.de/jobs/meistbietend_nid_24938.html ). Unfortunately, no joke but a sad reality.
Jens Christian Heuer
Sources:
Wikipedia
( http://de.wikipedia.org/wiki/Mindestlohn ), ( http://de.wikipedia.org/wiki/Negative_Einkommensteuer )
Manager Magazin
( http://www.manager-magazin.de/geld/ . artikel / html 0,2828,352170,00 )
minimum wage initiative ( http://www.mindestlohn.de/ )
minimum wage Weblog ( http: / / blog.mindestlohn.de / )
BWL-Bote ( http://www.bwl-bote.de/20050410.htm )
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