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Where the minimum wage bites workers. Factor substitutability and innovativeness at the workplace

Kai-Uwe Müller and Alexandra Fedorets

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: Exploiting variation in the bite of the German minimum wage we estimate its impact on employment. We break down effect heterogeneity for different degrees of labor substitutability based on admin data on job content and survey data on the workplace. While the average effect is insignificant, interacting treatment with substitutability, we get significantly effects on the probability of remaining employed and the transition to unemployment for employees more easily substitutable by capital.

JEL-codes: H22 H55 J20 J38 (search for similar items in EconPapers)
Date: 2017
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