Tuesday, February 3, 2015

Labour Market: Forecast: minimum wage fired shadow economy – ABC Online

Labour Market: Forecast: minimum wage fired shadow economy – ABC Online

Tuesday , 03.02.2015, 16:08
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The minimum wage in January increases the shadow economy in Germany according to a study this year to 1.5 billion euros -. and prevents first time in years a further decline of illegal work and employment

Their share of gross domestic product (GDP) therefore remains unchanged at 12.2 percent, as a study of the Tübingen Institute for Applied Economic Research (IAW) and the University of Linz apparent. Thus, the value in this country declined with the exception of the crisis of 2009 to date for years. Unionists warn, however, against demonizing the minimum wage.

“The current trend is also due to the minimum wage,” IAW director Bernhard Boockmann to the Institute as corporate members, among other things, the carmaker Daimler and technology company Bosch explained . are In itself, the robust economy and position would have caused in the labor market according to the forecast of a decline of the shadow economy. The term both undeclared work and illegal employment and criminal activities such as receiving stolen goods and fraud are referred to.

“overlooked is the strong regulatory function of the minimum wage,” but stressed Annelie Colorful Bach, board member of the German Trade Union Federation (DGB) in Berlin. “The argument undeclared work is constantly used to polemics against taxes, social security and higher wages, while the relationship is by no means unique.”

The minimum wage is started for the new year nationwide. According to the Ministry of Labour almost four million people are expected to benefit from the new rules.

According to estimates by the experts actually probably only a relatively small part of the minimum wage be bypassed by moonlighting. For the necessary wage increases in their typical industries are, according to the experts total at about 7 billion euros. The expected increase of the shadow economy of 1.5 billion euros by the minimum wage is much lower.

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Critics in it but a “ideological prestige project of the SPD”. “The unit minimum wage is a special stimulus package for the economy,” said about the Baden-Württemberg FDP chairman Michael Theurer.

Black working according to the IAW particularly common. In restaurants, hotels and parts of the construction industry Also, personal services and agriculture will comparatively often earns the Treasury over, it was said

With regard to other countries, the Federal Republic is not bad because:. Compared to other OECD countries, the which are committed to democracy and a market economy, Germany, with its economy in the middle – like France and Scandinavian countries. Gloomy it looks in the crisis countries Greece, Italy, Portugal and Spain. Here, the share of the shadow economy is on its GDP from 18 to 22 percent.

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