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

We analyze whether the introduction of the general minimum wage in Germany in 2015 had an effect on workers’ self-rated health. To this end, we use survey data linked to administrative employment records and apply difference-in-differences regressions combined with propensity score matching. This ap...

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Veröffentlicht in:Empirical economics 2022-06, Vol.62 (6), p.2989-3014
Hauptverfasser: Hafner, Lucas, Lochner, Benjamin
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container_title Empirical economics
container_volume 62
creator Hafner, Lucas
Lochner, Benjamin
description We analyze whether the introduction of the general minimum wage in Germany in 2015 had an effect on workers’ self-rated health. To this end, we use survey data linked to administrative employment records and apply difference-in-differences regressions combined with propensity score matching. This approach enables us to control for a vast set of potential confounding variables. We find a health improving effect among the individuals who were most likely to be affected by the reform. Our results indicate that workers’ improved satisfaction with pay, their reduced working hours, and a reduction in time pressure at work may drive this result.
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subjects Econometrics
Economic theory
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Employment
Experiments
Finance
Health status
Insurance
Labor market
Management
Mental health
Minimum wage
Natural experiment
Propensity
Self evaluation
Self-rated health
Statistics for Business
Wages & salaries
Workers
Working hours
title Do minimum wages improve self-rated health? Evidence from a natural experiment
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