The Impact of the German Minimum Wage on Individual Wages and Monthly Earnings
Research output: Contribution to journal › Journal article › Research › peer-review
Documents
- [2366049X - Jahrbücher für Nationalökonomie und Statistik] The Impact of the German Minimum Wage on Individual Wages and Monthly Earnings
Final published version, 2.36 MB, PDF document
This paper evaluates the short-run impact of the introduction of a statutory minimum wage in Germany on the hourly wages and monthly earnings of workers targeted by the reform. We first provide detailed descriptive evidence of changes to the wage structure in particular at the bottom of the distribution and distinguish between trends for regularly employed and marginally employed workers. In the causal analysis, we then employ a differential trend adjusted difference-in-differences (DTADD) strategy to identify the extent to which these changes in wages and earnings can be attributed to the minimum wage introduction. We find that the minimum wage introduction can account for hourly wage growth in the order of roughly 6.5 % or €0.45/hour and an increase in monthly earnings of 6.6 % or €53/month. Despite finding wage growth at the bottom of the distribution, the paper documents widespread non-compliance with the mandated wage floor of €8.50/hour.
Original language | English |
---|---|
Journal | Jahrbücher für Nationalökonomie und Statistik |
Volume | 240 |
Issue number | 2-3 |
Pages (from-to) | 201-231 |
ISSN | 0021-4027 |
DOIs | |
Publication status | Published - 19 Jun 2019 |
- Faculty of Social Sciences - minimum wage, wage and earnings structure, inequality
Research areas
Number of downloads are based on statistics from Google Scholar and www.ku.dk
No data available
ID: 234140783