Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/225241 
Authors: 
Year of Publication: 
2020
Series/Report no.: 
GLO Discussion Paper No. 687
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
This study examines the influence of the statutory minimum wage on labor demand elasticities regarding low-skilled workers. For this, a regression discontinuity analysis is conducted using company panel data from 2013 to 2018. In addition, a possible endogeneity of the remuneration for low-skilled workers was considered using an IV estimation. It is shown that the monopsonistic structures of the labor market may continue to exist after the introduction of the minimum wage. Additionally, the own-wage elasticity for low-skilled workers did not change over the period considered. However, in the short run, stronger substitutive relationships with medium-skilled workers seem to exist, and probably also with highly qualified employees in the long run.
Subjects: 
Minimum Wage
Labor Demand
Monopsony
Low-skilled Workers
JEL: 
J23
J42
J31
J21
Document Type: 
Working Paper

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