Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180913 
Year of Publication: 
2018
Series/Report no.: 
ZEW Discussion Papers No. 18-032
Publisher: 
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim
Abstract: 
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.
Subjects: 
wages
job durations
work
employment
productivity
structural estimation
JEL: 
J31
J51
J64
Document Type: 
Working Paper

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