Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/215497
Authors: 
Burauel, Patrick
Caliendo, Marco
Grabka, Markus M.
Obst, Cosima
Preuss, Malte
Schröder, Carsten
Shupe, Cortnie
Year of Publication: 
2020
Citation: 
[Journal:] Jahrbücher für Nationalökonomie und Statistik [Volume:] 240 [Year:] 2020 [Issue:] 2/3 [Pages:] 201-231 [ISSN:] 0021-4027
Abstract: 
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.
Subjects: 
Minimum wage
Wage and earnings structure
Inequality
JEL: 
J31
J38
J22
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc-nd/4.0
Document Type: 
Article
Document Version: 
Published Version

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.