The Impact of the German Minimum Wage on Individual Wages and Monthly Earnings
Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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The Impact of the German Minimum Wage on Individual Wages and Monthly Earnings. / Burauel, Patrick; Caliendo, Marco; Grabka, Markus M.; Obst, Cosima ; Preuss, Malte; Schröder, Carsten; Shupe, Cortnie Anne.
I: Jahrbücher für Nationalökonomie und Statistik, Bind 240, Nr. 2-3, 19.06.2019, s. 201-231.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - The Impact of the German Minimum Wage on Individual Wages and Monthly Earnings
AU - Burauel, Patrick
AU - Caliendo, Marco
AU - Grabka, Markus M.
AU - Obst, Cosima
AU - Preuss, Malte
AU - Schröder, Carsten
AU - Shupe, Cortnie Anne
PY - 2019/6/19
Y1 - 2019/6/19
N2 - 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.
AB - 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.
KW - Faculty of Social Sciences
KW - minimum wage
KW - wage and earnings structure
KW - inequality
U2 - 10.1515/jbnst-2018-0077
DO - 10.1515/jbnst-2018-0077
M3 - Journal article
VL - 240
SP - 201
EP - 231
JO - Jahrbücher für Nationalökonomie und Statistik
JF - Jahrbücher für Nationalökonomie und Statistik
SN - 0021-4027
IS - 2-3
ER -
ID: 234140783