IDEAS home Printed from https://ideas.repec.org/p/iab/iabdpa/201917.html
   My bibliography  Save this paper

Do minimum wages improve self-rated health? : Evidence from a natural experiment

Author

Listed:
  • Hafner, Lucas

    (FAU)

  • Lochner, Benjamin

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

Abstract

"In this paper we analyze whether the introduction of the general minimum wage in Germany in 2015 had an effect on workers' self-rated health. To study this question, we use survey-data linked to administrative employment records and apply difference-in-difference regressions combined with propensity score matching. This approach enables us to control for a vast set of possibly confounding variables. We find on average significant improvements of self-rated health for individuals who are affected by the reform. Our results indicate, that a significant reduction of weekly working hours potentially drives this result." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Hafner, Lucas & Lochner, Benjamin, 2019. "Do minimum wages improve self-rated health? : Evidence from a natural experiment," IAB-Discussion Paper 201917, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:201917
    as

    Download full text from publisher

    File URL: https://doku.iab.de/discussionpapers/2019/dp1719.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kamila Cygan-Rehm & Christoph Wunder, 2018. "Do Working Hours Affect Health? Evidence from Statutory Workweek Regulations in Germany," CESifo Working Paper Series 7098, CESifo.
    2. Cygan-Rehm, Kamila & Wunder, Christoph, 2018. "Do working hours affect health? Evidence from statutory workweek regulations in Germany," Labour Economics, Elsevier, vol. 53(C), pages 162-171.
    3. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
    4. Bullinger, L.R., 2017. "The effect of minimum wages on adolescent fertility: A nationwide analysis," American Journal of Public Health, American Public Health Association, vol. 107(3), pages 447-452.
    5. Aretz Bodo & Arntz Melanie & Gregory Terry, 2013. "The Minimum Wage Affects Them All: Evidence on Employment Spillovers in the Roofing Sector," German Economic Review, De Gruyter, vol. 14(3), pages 282-315, August.
    6. Masanori Kuroki, 2018. "Subjective well‐being and minimum wages: Evidence from U.S. states," Health Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 171-180, February.
    7. Eberle, Johanna & Schmucker, Alexandra, 2017. "Creating cross-sectional data and biographical variables with the Sample of Integrated Labour Market Biographies 1975-2014 : Programming examples for Stata," FDZ Methodenreport 201706_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Pusch, Toralf & Rehm, Miriam, 2017. "Mindestlohn, Arbeitsqualität und Arbeitszufriedenheit," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 70(7), pages 491-498.
    9. Kamila Cygam-Rehm & Christoph Wunder, 2018. "Do Working Hours Affect Health? Evidence from Statutory Workweek Regulations in Germany," SOEPpapers on Multidisciplinary Panel Data Research 967, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Scott Adams & McKinley L. Blackburn & Chad D. Cotti, 2012. "Minimum Wages and Alcohol-Related Traffic Fatalities among Teens," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 828-840, August.
    11. Matthias Dorner & Jörg Heining & Peter Jacobebbinghaus & Stefan Seth, 2010. "The Sample of Integrated Labour Market Biographies," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 130(4), pages 599-608.
    12. Mark B. Stewart, 2004. "The Impact of the Introduction of the U.K. Minimum Wage on the Employment Probabilities of Low-Wage Workers," Journal of the European Economic Association, MIT Press, vol. 2(1), pages 67-97, March.
    13. Brady P. Horn & Johanna Catherine Maclean & Michael R. Strain, 2017. "Do Minimum Wage Increases Influence Worker Health?," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1986-2007, October.
    14. Du Juan & Leigh J. Paul, 2018. "Effects of Minimum Wages on Absence from Work Due to Illness," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(1), pages 1-23, January.
    15. Wiji Arulampalam & Alison L. Booth & Mark L. Bryan, 2004. "Training and the new minimum wage," Economic Journal, Royal Economic Society, vol. 114(494), pages 87-94, March.
    16. Mario Bossler & Sandra Broszeit, 2017. "Do minimum wages increase job satisfaction? Micro-data evidence from the new German minimum wage," LABOUR, CEIS, vol. 31(4), pages 480-493, December.
    17. David Neumark & DMark Schweitzer & DaWilliam Wascher, 2004. "Minimum Wage Effects throughout the Wage Distribution," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    18. Schmucker, Alexandra & Seth, Stefan & Ludsteck, Johannes & Eberle, Johanna & Ganzer, Andreas, 2016. "Betriebs-Historik-Panel 1975-2014 (Establishment History Panel 1975-2014)," FDZ Datenreport. Documentation on Labour Market Data 201603_de, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    19. Bossler Mario & Gürtzgen Nicole & Betzl Ute & Feist Lisa & Lochner Benjamin, 2020. "The German Minimum Wage: Effects on Productivity, Profitability, and Investments," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(2-3), pages 321-350, April.
    20. Pohl, R. Vincent & Clark, Kathryn L. & Thomas, Ryan C., 2017. "Minimum Wages and Healthy Diet," MPRA Paper 87239, University Library of Munich, Germany.
    21. Peter Jacobebbinghaus & Stefan Seth, 2007. "European Data Watch: The German Integrated Employment Biographies Sample IEBS," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(2), pages 335-342.
    22. Dorner, Matthias & Heining, Jörg & Jacobebbinghaus, Peter & Seth, Stefan, 2010. "Sample of Integrated Labour Market Biographies (SIAB) 1975-2008," FDZ Methodenreport 201009_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    23. Bonin, Holger & Isphording, Ingo E. & Krause-Pilatus, Annabelle & Lichter, Andreas & Pestel, Nico & Rinne, Ulf & al., et, 2018. "Auswirkungen des gesetzlichen Mindestlohns auf Beschäftigung, Arbeitszeit und Arbeitslosigkeit," IZA Research Reports 83, Institute of Labor Economics (IZA).
    24. Jan Marcus, 2014. "Does Job Loss Make You Smoke and Gain Weight?," Economica, London School of Economics and Political Science, vol. 81(324), pages 626-648, October.
    25. Schmucker, Alexandra & Seth, Stefan & Ludsteck, Johannes & Eberle, Johanna & Ganzer, Andreas, 2016. "Establishment History Panel 1975-2014," FDZ Datenreport. Documentation on Labour Market Data 201603_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    26. Filiz Gülal & Adam Ayaita, 2020. "The Impact of Minimum Wages on Well-Being: Evidence from a Quasi-experiment in Germany," Journal of Happiness Studies, Springer, vol. 21(7), pages 2669-2692, October.
    27. Antoni, Manfred & Ganzer, Andreas & Vom Berge, Philipp, 2016. "Sample of integrated labour market biographies (SIAB) 1975-2014," FDZ Datenreport. Documentation on Labour Market Data 201604_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    28. Laura Argys & M. Melinda Pitts & Joseph J. Sabia, 2014. "Do Minimum Wages Really Increase Youth Drinking and Drunk Driving?," FRB Atlanta Working Paper 2014-20, Federal Reserve Bank of Atlanta.
    29. Elena Andreyeva & Benjamin Ukert, 2018. "The impact of the minimum wage on health," International Journal of Health Economics and Management, Springer, vol. 18(4), pages 337-375, December.
    30. repec:aph:ajpbhl:10.2105/ajph.2016.303604_3 is not listed on IDEAS
    31. Komro, K.A. & Livingston, M.D. & Markowitz, S. & Wagenaar, A.C., 2016. "The effect of an increased minimum wage on infant mortality and birth weight," American Journal of Public Health, American Public Health Association, vol. 106(8), pages 1514-1516.
    32. Toralf Pusch & Miriam Rehm, 2017. "Positive Effekte des Mindestlohns auf Arbeitsplatzqualität und Arbeitszufriedenheit [Positive Effects of the German Minimum Wage on Job Quality and Employee Job Satisfaction]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 97(6), pages 409-414, June.
    33. Marcus Dittrich & Andreas Knabe & Kristina Leipold, 2014. "Spillover Effects of Minimum Wages in Experimental Wage Negotiations," CESifo Economic Studies, CESifo, vol. 60(4), pages 780-804.
    34. Dorner, Matthias & Heining, Jörg & Jacobebbinghaus, Peter & Seth, Stefan, 2010. "Sample of Integrated Labour Market Biographies (SIAB) 1975-2008," FDZ Datenreport. Documentation on Labour Market Data 201001_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    35. Reeves, Aaron & McKee, Martin & Mackenbach, Johan & Whitehead, Margaret & Stuckler, David, 2017. "Introduction of a national minimum wage reduceddepressive symptoms in low-wage workers:a quasi-natural experiment in the UK," LSE Research Online Documents on Economics 66485, London School of Economics and Political Science, LSE Library.
    36. Otto Lenhart, 2017. "Do Higher Minimum Wages Benefit Health? Evidence From the UK," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 36(4), pages 828-852, September.
    37. Aaron Reeves & Martin McKee & Johan Mackenbach & Margaret Whitehead & David Stuckler, 2017. "Introduction of a National Minimum Wage Reduced Depressive Symptoms in Low‐Wage Workers: A Quasi‐Natural Experiment in the UK," Health Economics, John Wiley & Sons, Ltd., vol. 26(5), pages 639-655, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hafner, Lucas, 2019. "Do minimum wages improve self-rated health? Evidence from a natural experiment," FAU Discussion Papers in Economics 02/2019, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    2. Bachmann, Ronald & Bonin, Holger & Boockmann, Bernhard & Demir, Gökay & Felder, Rahel & Isphording, Ingo E. & Kalweit, René & Laub, Natalie & Vonnahme, Christina & Zimpelmann, Christian, 2020. "Auswirkungen des gesetzlichen Mindestlohns auf Löhne und Arbeitszeiten," IZA Research Reports 96, Institute of Labor Economics (IZA).
    3. Koch, Andreas & Kirchmann, Andrea & Reiner, Marcel & Scheu, Tobias & Zühlke, Anne & Bonin, Holger, 2020. "Verhaltensmuster von Betrieben und Beschäftigten im Kontext des gesetzlichen Mindestlohns," IZA Research Reports 97, Institute of Labor Economics (IZA).
    4. Bachmann, Ronald & Bonin, Holger & Boockmann, Bernhard & Demir, Gökay & Felder, Rahel & Isphording, Ingo & Kalweit, René & Laub, Natalie & Vonnahme, Christina & Zimpelmann, Christian, 2020. "Auswirkungen des gesetzlichen Mindestlohns auf Löhne und Arbeitszeiten: Studie im Auftrag der Mindestlohnkommission," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 222998, November.
    5. Jiwei Chen, 2021. "Do minimum wage increases benefit worker health? Evidence from China," Review of Economics of the Household, Springer, vol. 19(2), pages 473-499, June.
    6. Otto Lenhart, 2020. "Pathways Between Minimum Wages and Health: The Roles of Health Insurance, Health Care Access and Health Care Utilization," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(3), pages 438-459, June.
    7. Marco Caliendo & Carsten Schröder & Linda Wittbrodt, 2019. "The Causal Effects of the Minimum Wage Introduction in Germany – An Overview," German Economic Review, Verein für Socialpolitik, vol. 20(3), pages 257-292, August.
    8. Elena Andreyeva & Benjamin Ukert, 2018. "The impact of the minimum wage on health," International Journal of Health Economics and Management, Springer, vol. 18(4), pages 337-375, December.
    9. Lenhart, Otto, 2021. "The effects of minimum wages on teenage birth rates," Economics Letters, Elsevier, vol. 198(C).
    10. Filiz Gülal & Adam Ayaita, 2020. "The Impact of Minimum Wages on Well-Being: Evidence from a Quasi-experiment in Germany," Journal of Happiness Studies, Springer, vol. 21(7), pages 2669-2692, October.
    11. Bossler, Mario & Schank, Thorsten, 2020. "Wage Inequality in Germany after the Minimum Wage Introduction," IZA Discussion Papers 13003, Institute of Labor Economics (IZA).
    12. SATO Kazuma, 2021. "The Impact of the Minimum Wage Increase on Subjective Wellbeing: Evidence from Japan," Discussion papers 21075, Research Institute of Economy, Trade and Industry (RIETI).
    13. Anthony Lepinteur, 2021. "The asymmetric experience of gains and losses in job security on health," Health Economics, John Wiley & Sons, Ltd., vol. 30(9), pages 2217-2229, September.
    14. repec:iab:iabfda:201109(de is not listed on IDEAS
    15. Berniell, Inés & Bietenbeck, Jan, 2020. "The effect of working hours on health," Economics & Human Biology, Elsevier, vol. 39(C).
    16. Bossler, Mario & Gürtzgen, Nicole & Börschlein, Erik-Benjamin, 2020. "Auswirkungen des gesetzlichen Mindestlohns auf Betriebe und Unternehmen," IAB-Forschungsbericht 202005, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    17. Bossler, Mario & Gürtzgen, Nicole & Lochner, Benjamin & Betzl, Ute & Feist, Lisa, 2018. "The German minimum wage: Effects on business expectations, profitability, and investments," FAU Discussion Papers in Economics 13/2018, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    18. Heinisch, Dominik & Koenig, Johannes & Otto, Anne, 2019. "The IAB-INCHER project of earned doctorates (IIPED): A supervised machine learning approach to identify doctorate recipients in the German integrated employment biography data," IAB-Discussion Paper 201913, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    19. Hochfellner, Daniela & Müller, Dana & Wurdack, Anja, 2014. "BASiD - Biografiedaten ausgewählter Sozialversicherungsträger in Deutschland," FDZ Datenreport. Documentation on Labour Market Data 201109_de, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    20. repec:iab:iabfda:201109(en is not listed on IDEAS
    21. Averett, Susan L. & Smith, Julie K. & Wang, Yang, 2019. "Minimum Wages and the Health and Access to Care of Immigrants' Children," IZA Discussion Papers 12606, Institute of Labor Economics (IZA).
    22. Christine Dauth & Julia Lang, 2019. "Can the unemployed be trained to care for the elderly? The effects of subsidized training in elderly care," Health Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 543-555, April.

    More about this item

    Keywords

    Bundesrepublik Deutschland ; Auswirkungen ; Beschäftigungseffekte ; Gesundheitszustand ; Mindestlohn ; Geringverdiener ; Selbsteinschätzung ; Stress ; IAB-Haushaltspanel ; Arbeitszeitverkürzung ; 2012-2015;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iab:iabdpa:201917. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/iabbbde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: IAB, Geschäftsbereich Wissenschaftliche Fachinformation und Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/iabbbde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.