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Minimum wage and job reallocation: The hidden role of financial constraints

Author

Listed:
  • Taskin, Ahmet Ali

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Gehrke, Britta

    (Institute for Employment Research (IAB), Nuremberg, Germany ; FU Berlin)

Abstract

"When Germany introduced its federal statutory minimum wage of 8.50 euro in 2015, it marked a major shift in labour policy. Fast forward to 2025, and the minimum wage is now 12.82 euro. Given annual increases in the minimum wage, there are ongoing debates about how minimum wages affect income inequality. It turns out the answer depends heavily on the financial strength of the firms." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Taskin, Ahmet Ali & Gehrke, Britta, 2026. "Minimum wage and job reallocation: The hidden role of financial constraints," IAB-Forum, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 2026(2026-01-1), pages 20260115.02.
    • Handle: RePEc:iab:iabfor:v:2026:i::p:20260115.02
    DOI: 10.48720/IAB.FOO.20260115.02
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