Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110951
Authors: 
Boll, Christina
Hüning, Hendrik
Leppin, Julian
Puckelwald, Johannes
Year of Publication: 
2015
Series/Report no.: 
HWWI Research Paper 163
Abstract: 
In a simulation-based study with data from the German Socio-Economic Panel Study (SOEP), we analyze the effects of the newly introduced statutory minimum wage of 8.50 Euro per working hour in Germany on the gender wage gap. In our first scenario where we abstain from employment effects, the pay differential is reduced by 2.5 percentage points from 19.6 % to 17.1 %, due to a reduction of the sticky-floor effect at the bottom of the wage distribution. In more realistic scenarios where we incorporate minimum wage effects on labor demand, a further reduction of the pay gap by 0.2 pp (1.2 pp) in case of a monopsonistic (neoclassical) labor market is achieved. However, this comes at the cost of job losses by which women are more strongly affected than men. The magnitude of job losses ranges between 0.2 % and 3.0 % of all employees. It is higher in a neoclassical market setting and positively related to the assumed wage elasticity.
Subjects: 
minimum wage
labor demand
wage elasticity
gender pay gap
monopsony
JEL: 
J31
J23
J16
Document Type: 
Working Paper

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