Effects of the German Minimum Wage on Wages and Household Income

Pusch Toralf ()
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Pusch Toralf: WSI, Hans-Böckler-Stiftung, Georg-Glock-Str. 18, Düsseldorf, 40474, Germany

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2025, vol. 245, issue 1-2, 153-183

Abstract: This article examines the effects of the introduction of the statutory minimum wage on the distribution of individual income from wages, as well as gross and net means-weighted income of workers in Germany. For the first time, data from the Survey of Income and Consumption was used, in which incomes are recorded in great detail. Both descriptive findings and the results of Unconditional Quantile Regressions indicate that the incomes of workers in regions with a high level of minimum wage intervention experienced significant increases after the introduction of the minimum wage, ranging into the middle band of the income distribution. Accordingly, the minimum wage has positively influenced the incomes of a large number of employee households.

Keywords: minimum wage; income distribution; Germany; Unconditional Quantile Regressions (search for similar items in EconPapers)
JEL-codes: D31 J31 J38 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:245:y:2025:i:1-2:p:153-183:n:1001

DOI: 10.1515/jbnst-2023-0024

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