Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/176943 
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 6924
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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 individuals 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 particular in the left tail of the distribution, without reducing relative employment in low‐wage regions within the first two years.
Subjects: 
difference-in-differences
employment
Germany
minimum wage
wage inequality
JEL: 
J31
J58
R12
Document Type: 
Working Paper
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