Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278858 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16160
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study the productivity effect of the German national minimum wage by applying administrative firm data. At the firm level, we confirm positive effects on wages and negative employment effects and document higher productivity even net of output price increases. We find higher wages but no employment effects at the level of aggregate industry×region cells. The minimum wage increased aggregate productivity in manufacturing. We do not find that employment reallocation across firms contributed to these aggregate productivity gains, nor do we find improvements in allocative efficiency. Instead, the productivity gains from the minimum wage result from within-firm productivity improvements only.
Subjects: 
minimum wage
firm productivity
output prices
factor reallocation
JEL: 
L11
L25
J31
D24
Document Type: 
Working Paper

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