Unemployment Effects of the German Minimum Wage in an Equilibrium Job Search Model

Maximilian Blömer, Nicole Guertzgen (), Laura Pohlan, Holger Stichnoth and Gerard van den Berg

No 7160, CESifo Working Paper Series from CESifo

Abstract: We structurally estimate an equilibrium search model using German administrative data and use the model for counterfactual analyses of a uniform minimum wage. The model with worker and firm heterogeneity does not restrict the sign of employment effects a priori; it allows for different job offer arrival rates for the employed and the unemployed and lets firms optimally choose their recruiting intensity. We find that unemployment is a non-monotonic function of the minimum wage level. Effects differ strongly by labour market segment. The differences are mostly driven by firm productivity levels, but differences in search frictions matter as well.

Keywords: monopsony; wages; employment; productivity; structural estimation (search for similar items in EconPapers)
JEL-codes: J31 J38 J42 J64 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp7160_0.pdf (application/pdf)

Related works:
Journal Article: Unemployment effects of the German minimum wage in an equilibrium job search model (2024)
Working Paper: Unemployment effects of the German minimum wage in an equilibrium job search model (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_7160

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().