Unemployment effects of the German minimum wage in an equilibrium job search model

Maximilian Blömer, Nicole Guertzgen, Laura Pohlan, Holger Stichnoth and Gerard J. van den Berg

Labour Economics, 2024, vol. 91, issue C

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 labor market segment defined by region, skill, and permanent worker ability.

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: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927537124001222
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Unemployment Effects of the German Minimum Wage in an Equilibrium Job Search Model (2018)
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:eee:labeco:v:91:y:2024:i:c:s0927537124001222

DOI: 10.1016/j.labeco.2024.102626

Access Statistics for this article

Labour Economics is currently edited by A. Ichino

More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().