The Regional Effects of a National Minimum Wage

Gabriel Ahlfeldt, Duncan Roth and Tobias Seidel

No 6924, CESifo Working Paper Series from CESifo

Abstract: We estimate the spatially differential effects of a nationally uniform minimum wage that was introduced in Germany in 2015. To this end, we use a micro data set covering the universe of employed and unemployed individuals in Germany from 2011 to 2016 and a difference‐in‐differences based identification strategy that controls for heterogeneity in pre‐treatment outcome trends. We find that the policy led to spatial wage convergence, in particular in the left tail of the distribution, without reducing relative employment in low‐wage regions within the first two years.

Keywords: difference-in-differences; employment; Germany; minimum wage; wage inequality (search for similar items in EconPapers)
JEL-codes: J31 J58 R12 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-eur, nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (64)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_6924

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