Do minimum wages improve self-rated health? Evidence from a natural experiment

Lucas Hafner and Benjamin Lochner
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Lucas Hafner: Friedrich-Alexander-Universität Erlangen-Nürnberg (FAU)

Empirical Economics, 2022, vol. 62, issue 6, No 13, 2989-3014

Abstract: Abstract We analyze whether the introduction of the general minimum wage in Germany in 2015 had an effect on workers’ self-rated health. To this end, we use survey data linked to administrative employment records and apply difference-in-differences regressions combined with propensity score matching. This approach enables us to control for a vast set of potential confounding variables. We find a health improving effect among the individuals who were most likely to be affected by the reform. Our results indicate that workers’ improved satisfaction with pay, their reduced working hours, and a reduction in time pressure at work may drive this result.

Keywords: Minimum wage; Self-rated health; Natural experiment; I10; I18; J38 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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Working Paper: Do minimum wages improve self-rated health?: Evidence from a natural experiment (2019)
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DOI: 10.1007/s00181-021-02114-3

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