Discussion paper

DP13005 The regional effects of Germany’s national minimum wage

We estimate the spatially differential effects of a nationally uniform minimum wage that was introduced in Germany in 2015. To this end, we use a micro data set covering the universe of employed and unemployed individ-uals in Germany from 2011 to 2016 and a difference-in-differences based identification strategy that controls for heterogeneity in pre-treatment outcome trends. We find that the policy led to spatial wage convergence, in par-ticular in the left tail of the distribution, without reducing relative employment in low-wage regions within the first two years.

£6.00
Citation

Ahlfeldt, G, D Roth and T Seidel (eds) (2018), “DP13005 The regional effects of Germany’s national minimum wage”, CEPR Press Discussion Paper No. 13005. https://cepr.org/publications/dp13005