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The German generation internship and the minimum wage introduction: evidence from big data

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  • Mario Bossler
  • Jakob Wegmann

Abstract

The new German minimum wage applies a specific exemption clause for internships, where internships that last up to three months are exempted while internships that exceed three months are due to the minimum wage. Negative minimum wage effects on internships are heavily debated as internships are mostly non-productive. Difference-in-difference analyses that exploit establishment and regional variation in the bite of the minimum wage do not show a reduction in the number of internships. In addition, we pursue an innovative approach by using Google search data to analyse how the search intensity for internships changed in course of the minimum wage introduction. Difference-in-difference comparisons with other countries in Europe do not reveal an effect on the search for internship positions in general, but we observe a significant reduction in Google search for ‘generation internship’. This suggests that the underlying societal phenomenon of a generation entering internships without a perspective for regular jobs has lost in relevance.

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  • Mario Bossler & Jakob Wegmann, 2019. "The German generation internship and the minimum wage introduction: evidence from big data," Applied Economics, Taylor & Francis Journals, vol. 51(16), pages 1730-1747, April.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1730-1747
    DOI: 10.1080/00036846.2018.1528339
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    1. Bossler, Mario & Gürtzgen, Nicole & Lochner, Benjamin & Betzl, Ute & Feist, Lisa & Wegmann, Jakob, 2018. "Auswirkungen des gesetzlichen Mindestlohns auf Betriebe und Unternehmen," IAB-Forschungsbericht 201804, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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