Employment Effects of the New German Minimum Wage: Evidence from Establishment-Level Microdata
Mario Bossler () and
ILR Review, 2020, vol. 73, issue 5, 1070-1094
The authors present the first evidence on the consequences of the new statutory minimum wage in Germany, which was implemented on January 1, 2015. Using the IAB Establishment Panel, they identify employment effects from variation in the extent that establishments are affected by the minimum wage. A difference-in-differences estimation reveals an increase in average wages between 3.8% and 6.3% and an employment loss by approximately 1.7% in establishments affected by the minimum wage. These estimates imply a labor demand elasticity with respect to wages ranging between âˆ’0.2 and âˆ’0.4. The authors also observe a transitory reduction of the working hours in the first year after the introduction and that the employment effect seems mostly driven by a reduction in hires rather than by an increase in layoffs.
Keywords: minimum wage; employment evaluation; difference-in-differences; Germany (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Employment effects of the new German minimum wage: evidence from establishment-level micro data (2016)
Working Paper: Employment effects of the new German minimum wage: Evidence from establishment-level micro data (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:73:y:2020:i:5:p:1070-1094
Access Statistics for this article
More articles in ILR Review from Cornell University, ILR School
Bibliographic data for series maintained by SAGE Publications ().