Unemployment Effects of the German Minimum Wage in an Equilibrium Job Search Model

Maximilian J. Blömer, Nicole Guertzgen, Laura Pohlan, Holger Stichnoth and Gerard J. van den Berg

Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg

Abstract: We structurally estimate an equilibrium search model using German administrative data and use the model for counterfactual analyses of a uniform minimum wage. The model with worker and firm heterogeneity does not restrict the sign of employment effects a priori; it allows for different job offer arrival rates for the employed and the unemployed and lets firms optimally choose their recruiting intensity. We find that unemployment is a non-monotonic function of the minimum wage level. Effects differ strongly by labor market segment defined by region, skill, and permanent worker ability.

Keywords: monopsony; wages; employment; productivity; structural estimation. (search for similar items in EconPapers)
JEL-codes: J31 J38 J42 J64 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-eur and nep-inv
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http://beta.u-strasbg.fr/WP/2024/2024-43.pdf (application/pdf)

Related works:
Journal Article: Unemployment effects of the German minimum wage in an equilibrium job search model (2024)
Working Paper: Unemployment Effects of the German Minimum Wage in an Equilibrium Job Search Model (2018)
Working Paper: Unemployment effects of the German minimum wage in an equilibrium job search model (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ulp:sbbeta:2024-43

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