New Publication at the Chair for HRM and Organisation

Several Swiss cantons introduced high and strongly binding minimum wages in recent years. This introduction had a substantial positive impact on training. Employers invested more in formal and generally applicable training during working time. The impact is strongest for employees earning less or around the new minimum wage level. The positive effect however is also measurable for employees with higher earnings and not concentrated on newly hired employees. Obviously employers affected by minimum wages preferred to increase the productivity of their employees instead of paying for hiring new employees. The positive training effect is in contrast to most theoretical and empirical studies so far. These studies argue based on the standard human capital theory that minimum wages have a negative or no impact on training. The authors explain how the differences in findings between the studies can be reconciled. More information can be found here.