Unemployment effects of the German minimum wage in an equilibrium job search model
Nicole Guertzgen (),
Laura Pohlan (),
Holger Stichnoth () and
Gerard J. van den Berg
No 18-032, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research
We structurally estimate an equilibrium search model using German administrative data and use this 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 and allows for different job offer arrival rates for the employed and the unemployed. We find that unemployment is a non-monotonic function of the minimum wage level. Effects differ strongly by labour market segment. Cross-segment variation of the estimated effects is mostly driven by firm productivity levels rather than by search frictions or the opportunity cost of employment.
Keywords: wages; job durations; work; employment; productivity; structural estimation (search for similar items in EconPapers)
JEL-codes: J31 J51 J64 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur and nep-lab
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Working Paper: Unemployment Effects of the German Minimum Wage in an Equilibrium Job Search Model (2018)
Working Paper: Estimating an Equilibrium Job Search Model for the German Labour Market (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:18032
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