Study: minimum wage leads to more illegal work – STAR

Study: minimum wage leads to more illegal work – STAR

D he minimum wage since the beginning of this year, according to a study pushes ahead moonlighting and other illegal economic activities. The shadow economy will shrink in 2015 not Germany for the first time in years, according to a study by the Institute for Applied Economic Research (IAW) and the University of Linz. The German Confederation of Trade Unions (DGB) questioned the results of the research.

Actually, the shadow economy in 2015 would shrink by around 1.3 billion euros due to the forecast economic development, the scientists said, but minimum wage and slightly higher social contributions would help to prevent the development. Just the new wage provision was the shady business to grow by 1.5 billion euros. Undeclared work, illegal employment and other unlawful activities would be so bottom line in 2015 compared to the previous year to 200 million euros “slightly” increase. The “downward trend of the economy,” which of continuation since 2003 and only once during the 2009 crisis was interrupted, I’m so “to rest”. Overall, the share of the informal economy in gross domestic product (GDP) but remain stable at 12.2 percent.

DGB board member Annelie Buntenbach criticized the study. “We doubt that scientific methods for the calculation of economy and undeclared work are actually so exactly to calculate 200 million exactly the increase or decrease,” she explained. The calculations were based on “very vague” assumptions. The DGB doubt also basically the assumption that rising wages led to more illegal work, explained Colorful stream.

The minimum wage itself is bypassed by the estimates of researchers through activities of the underground economy to a relatively small extent , Overall, would in dden prone economy sectors in which the minimum wage of 8.50 euros per hour applies since January this year seven billion Euros are paid more in wages than 2014. The projected growth of the informal economy to 1.5 billion euros by the minimum wage falls considerably lower.

Undeclared work is the study found most frequently in agriculture, hospitality, personal service, and parts of the construction industry before. When comparing the volume shadow economy in the Member States of the Organization for Economic Cooperation and Development (OECD) Germany lies in the midfield. Southern European countries such as Greece, Italy and Spain, the share of the shadow economy in GDP with values ​​from 18 to 22 percent is significantly higher.