The regional effects of Germany’s national minimum wage

Gabriel Ahlfeldt, Duncan Roth and Tobias Seidel

No 13005, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We estimate the spatially differential effects of a nationally uniform minimum wage that was introduced in Germany in 2015. To this end, we use a micro data set covering the universe of employed and unemployed individ-uals in Germany from 2011 to 2016 and a difference-in-differences based identification strategy that controls for heterogeneity in pre-treatment outcome trends. We find that the policy led to spatial wage convergence, in par-ticular in the left tail of the distribution, without reducing relative employment in low-wage regions within the first two years.

Keywords: Difference-in-differences; Employment; Germany; Minimum wage; Wage inequality (search for similar items in EconPapers)
JEL-codes: J31 J58 R12 (search for similar items in EconPapers)
Date: 2018-06
New Economics Papers: this item is included in nep-geo, nep-lma and nep-ure
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Citations: View citations in EconPapers (83)

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