Minimum Wage Effects on Gender Gaps in Working Hours and Earnings in Germany

Clemens Ohlert ()
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Clemens Ohlert: Federal Institute for Occupational Safety and Health

No 663, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: This paper investigates whether the introduction of a statutory minimum wage in Germany has led to a reduction in gender gaps in hourly wages, working hours and monthly earnings. Using the 2014 Structure of Earnings Survey and the 2015 Earnings Survey, a difference-in-differences approach was applied at the establishment level. The results show a reduction of the gender pay gap in establishments of up to 3.6 percentage points due to the introduction of the minimum wage. While the effects on hourly wages of women and men in low-wage jobs were the same on average, women are more often affected by the minimum wage and therefore benefit more often from it. The gender time gap in establishments decreased by about 2.4 percentage points on average and by about 3.9 percentage points among low wage workers. The minimum wage led to a reduction in the average gender gap in gross monthly earnings in establishments of up to 6.1 percentage points and by up to 4.6 percentage points among low-wage employees.

Keywords: minimum wage; gender pay gap; gender time gap; gender earnings gap (search for similar items in EconPapers)
JEL-codes: J08 J16 J22 J31 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2024-01
New Economics Papers: this item is included in nep-eur, nep-gen and nep-lma
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