Effects of the German Minimum Wage on Earnings and Working Time Using Establishment Data

Ohlert Clemens ()
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Ohlert Clemens: Federal Institute for Occupational Safety and Health (BAuA) 84645 , Berlin, Germany

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2025, vol. 245, issue 1-2, 185-213

Abstract: This study examines the short-term effects of the introduction of a statutory minimum wage in Germany on hourly wages, monthly wages and paid working hours. We exploit a novel panel dataset by linking the Structure of Earnings Survey (SES) 2014 and the Earnings Survey (ES) 2015 and apply a difference-in-differences approach at the establishment level. The results indicate an effect of the introduction of the statutory minimum wage on the average hourly wages of employees in minimum wage establishments of up to 5.9 %. Due to negative effects on average working time of approximately minus 3.1 %, the effects on monthly gross earnings are smaller but still amount to up to 2.7 % on average. The results further suggest that the minimum wage effects on earnings were greater among low-wage employees than on average, in eastern Germany than in western Germany, and among part-time employees and marginal employees than among full-time employees.

Keywords: minimum wage; evaluation; hourly wages; earnings; working time (search for similar items in EconPapers)
JEL-codes: J08 J30 J31 (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:185-213:n:1008

DOI: 10.1515/jbnst-2024-0025

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