The introduction of the minimum wage in Germany in January will increase the use of undeclared work: according to a study by the Institute of Applied Economic Research of the University of Tubingen, in the south of the country. “The minimum wage of 8,50 euros gross per hour, introduced from 1 January, according to our calculations – reads the text – will lead to an increase in the underground economy of 1,5 billion euros” this year.
The study explains that the minimum wage applies above all to services, agriculture and catering, precisely those sectors where undeclared or illegal work is more frequent. Even if, concludes the study, overall the recourse to undeclared work tends to decrease in the presence of economic growth and a strong labor market.
