Skip to comments.‘Minimum wage could encourage moonlighting’ (Germany study)
Posted on 02/05/2014 1:00:37 AM PST by Olog-hai
The nationwide minimum wage, coupled with pension reforms, could reverse a long decline in people working off the books in Germany, and even prompt an increase, according to a study released on Tuesday.
The study, from Tübingens Institute for Applied Economic Research (IAW), working with models from the Austrias Linz University, said government reforms, including a national minimum hourly wage of 8.50 ($11.49), and retirement for some at 63, could lead to more earnings disappearing from official records.
The national minimum wage, which is set to be introduced next year, could encourage employers to hire people off the books in order to get away with paying them less than the legal limit, the study authors suggested.
(Excerpt) Read more at thelocal.de ...
I just hate it when people don’t behave like the good little robots government central planners expect them to.
No,No,no, that only happens with immigration laws,
Immigration laws result in those who work under the legal requirements ‘off the books’.
But Democrats compassionate employer mandates like free healthcare, birth control, minimum wage could never do the same.
Haven’t you seen those progressive institute studies??
And CBO reports?
This perceived downward trend of people working ‘off-the-books’ in Germany....is bogus. It’s just that the economic experts can’t get a clear accurate picture of the amount of black labor going on.
A German guy decides on a renovated bathroom, which would cost 12,000 Euro ($15k) for material and labor. He finds this guy who will do Saturday work (cash only), and the new price is 9,500 Euro...so he goes with black labor. German car mechanics do this....German roofers....German plumbers....German electricians, etc.
The only place where the new German minimum wage of 8.50 matters is in food service (fast food). Eating out will go up by a minimum of ten percent over the next year as this falls in place. Under-the-table labor will continue on, and is unaffected by the minimum wage deal.
If it involves Bruce Willis, then I am all for it!
And the best part about that, is that cash obviously isn’t taxed, so the person doing the labor sees all of it.