TY  - JOUR
A1  - Caliendo, Marco
A1  - Fedorets, Alexandra
A1  - Preuss, Malte
A1  - Schröder, Carsten
A1  - Wittbrodt, Linda
T1  - The short- and medium-term distributional effects of the German minimum wage reform
JF  - Empirical economics
N2  - This study quantifies the distributional effects of the minimum wage introduced in Germany in 2015. Using detailed Socio-Economic Panel survey data, we assess changes in the hourly wages, working hours, and monthly wages of employees who were entitled to be paid the minimum wage. We employ a difference-in-differences analysis, exploiting regional variation in the “bite” of the minimum wage. At the bottom of the hourly wage distribution, we document wage growth of 9% in the short term and 21% in the medium term. At the same time, we find a reduction in working hours, such that the increase in hourly wages does not lead to a subortionate increase in monthly wages. We conclude that working hours adjustments play an important role in the distributional effects of minimum wages.
KW  - minimum wage
KW  - wage distribution
KW  - hourly wages
KW  - inequality
Y1  - 2022
U6  - https://doi.org/10.1007/s00181-022-02288-4
SN  - 0377-7332
SN  - 1435-8921
VL  - 64
SP  - 1149
EP  - 1175
PB  - Springer
CY  - Berlin
ER  -