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The regional effects of Germany’s national minimum wage

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  • Ahlfeldt, Gabriel M.
  • Roth, Duncan
  • Seidel, Tobias

Abstract

We show that the minimum wage introduced in Germany in 2015 led to spatial wage convergence, in particular in the left tail of the distribution, without reducing relative employment in low-wage regions within the first two years.

Suggested Citation

  • Ahlfeldt, Gabriel M. & Roth, Duncan & Seidel, Tobias, 2018. "The regional effects of Germany’s national minimum wage," Economics Letters, Elsevier, vol. 172(C), pages 127-130.
    • Handle: RePEc:eee:ecolet:v:172:y:2018:i:c:p:127-130
    DOI: 10.1016/j.econlet.2018.08.032
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    1. repec:eee:labchp:v:3:y:1999:i:pb:p:2101-2163 is not listed on IDEAS
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    9. Stephen Machin & Alan Manning, 2004. "A Test of Competitive Labor Market Theory: The Wage Structure among Care Assistants in the South of England," ILR Review, Cornell University, ILR School, vol. 57(3), pages 371-385, April.
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    More about this item

    Keywords

    Difference-in-differences; Employment; Germany; Minimum wage;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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