Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/206960
Authors: 
Bonin, Holger
Isphording, Ingo Eduard
Krause-Pilatus, Annabelle
Lichter, Andreas
Pestel, Nico
Rinne, Ulf
Year of Publication: 
2019
Series/Report no.: 
IZA Policy Paper No. 145
Abstract: 
This paper studies the effects of the introduction of Germany's statutory minimum wage in 2015 on employment and unemployment on the level of regional labor markets. Using variation in the regional exposure to the new wage floor, we employ a difference-in-differences approach that compares the evolution of employment and unemployment between regions with varying minimum wage bites. Overall, we find no statistically significant effect of the introduction of the German minimum wage on regular employment subject to social insurance, but a statistically significant negative effect on marginal employment. The reduction is not accompanied by a proportional increase in unemployment.
Subjects: 
minimum wage
employment
unemployment
labor market regions
Germany
JEL: 
J21
J31
J38
Document Type: 
Working Paper

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