The director of the Institute for Labor Market and Vocational Research (IAB), Bernd Fitzenberger, has labeled an increase in the minimum wage during the Corona crisis as a clear “no-go”. However, minimum wages could be based on collective wages.
On the other hand, lowering the minimum wage would also be harmful. At the moment it is necessary to stimulate consumer demand. “A debate about wage cuts can lead to further uncertainty and thus to a reluctance to engage in private consumption,” warned Fitzenberger.