Calculating Gross Hourly Wages – the (Structure of) Earnings Survey and the German Socio-Economic Panel in Comparison

Abstract

Abstract The statutory minimum wage in Germany was set as an hourly wage. Thus, valid information on gross hourly wages must be calculated from monthly wages and weekly working hours. This paper compares the German Socio-Economic Panel (GSOEP) and the (Structure of) Earnings Survey (SES/ES). The sampling and collection of data on employees in the household survey GSOEP, and on jobs in the administrative surveys SES/ES exhibit fundamental conceptual differences. Accordingly, there is variation in the definition of types of employment and in the distribution of the observed units regarding central characteristics. Monthly wages, weekly working hours and gross hourly wages differ especially in the lower range of the respective distribution. Against this backdrop specific implications can be derived for minimum wage research.