Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/308177 
Year of Publication: 
2022
Citation: 
[Journal:] Empirical Economics [ISSN:] 1435-8921 [Volume:] 64 [Issue:] 3 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2022 [Pages:] 1149-1175
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
This study quantifies the distributional effects of the minimum wage introduced in Germany in 2015. Using detailed Socio-Economic Panel survey data, we assess changes in the hourly wages, working hours, and monthly wages of employees who were entitled to be paid the minimum wage. We employ a difference-in-differences analysis, exploiting regional variation in the "bite" of the minimum wage. At the bottom of the hourly wage distribution, we document wage growth of 9% in the short term and 21% in the medium term. At the same time, we find a reduction in working hours, such that the increase in hourly wages does not lead to a subortionate increase in monthly wages. We conclude that working hours adjustments play an important role in the distributional effects of minimum wages.
Subjects: 
Minimum wage
Wage distribution
Hourly wages
Inequality
JEL: 
J31
J38
J22
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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