Wage Inequality in Germany after the Minimum Wage Introduction
Monthly wage inequality in Germany continued to increase in the early 2000s, which is mainly explained by a rising part-time employment share. After 2010, inequality returned to the level of 2000. About half of the recent decrease is due to the introduction of the national minimum wage in 2015. Whil...
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Veröffentlicht in: | Journal of labor economics 2023-07, Vol.41 (3), p.813-857 |
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description | Monthly wage inequality in Germany continued to increase in the early 2000s, which is mainly explained by a rising part-time employment share. After 2010, inequality returned to the level of 2000. About half of the recent decrease is due to the introduction of the national minimum wage in 2015. While employment effects of the minimum wage are negligible, we find strong wage increases among the existing workforce. The minimum wage lowered wage inequality within eastern and western Germany but also led to a convergence of the east-west wage differential. The increased labor incomes were not offset by decreasing social benefits. |
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After 2010, inequality returned to the level of 2000. About half of the recent decrease is due to the introduction of the national minimum wage in 2015. While employment effects of the minimum wage are negligible, we find strong wage increases among the existing workforce. The minimum wage lowered wage inequality within eastern and western Germany but also led to a convergence of the east-west wage differential. 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After 2010, inequality returned to the level of 2000. About half of the recent decrease is due to the introduction of the national minimum wage in 2015. While employment effects of the minimum wage are negligible, we find strong wage increases among the existing workforce. The minimum wage lowered wage inequality within eastern and western Germany but also led to a convergence of the east-west wage differential. The increased labor incomes were not offset by decreasing social benefits.</description><subject>2000-2016</subject><subject>Convergence</subject><subject>Deutschland</subject><subject>East and West</subject><subject>Inequality</subject><subject>Labor economics</subject><subject>Lohnstruktur</subject><subject>Mindestlohn</subject><subject>Minimum wage</subject><subject>Part time employment</subject><subject>Wage differential</subject><subject>Workforce</subject><issn>0734-306X</issn><issn>1537-5307</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2023</creationdate><recordtype>article</recordtype><recordid>eNpF0E1LAzEQBuAgCtaqvyGgeFvN1ybZiyBFa6HiRdHbks1m25Ru0ibZQ_-9kS10LnN55p1hALjF6BEjyZ8EQbTCZ2CCSyqKkiJxDiZIUFZQxH8vwVWMG5RLMD4Bzz9qZeDCmf2gtjYdoHVwbkKv3AGqLpkA09rAD-tsP_TwiFPw7aCT9e4aXHRqG83NsU_B99vr1-y9WH7OF7OXZaEZIqloKW84w10rkGSU60qajrSGVlxLxFHFOdWENaxRlSRtPrmhqlGMNoTLPNDSKbgbc3fB7wcTU73xQ3B5ZU0k5ZXAHNGsHkalg48xmK7eBdurcKgxqv9_U4-_yRCO0GjvbDwxWTIscSlIJvcjGfTaarXyu2BiPK09Jv0Btwtq3Q</recordid><startdate>20230701</startdate><enddate>20230701</enddate><creator>Bossler, Mario</creator><creator>Schank, Thorsten</creator><general>The University of Chicago Press</general><general>University of Chicago, acting through its Press</general><scope>OQ6</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20230701</creationdate><title>Wage Inequality in Germany after the Minimum Wage Introduction</title><author>Bossler, Mario ; Schank, Thorsten</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c402t-d36b641fd708436c98ef2de396c80609663c24b4ba982d530b3aba43b268843d3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2023</creationdate><topic>2000-2016</topic><topic>Convergence</topic><topic>Deutschland</topic><topic>East and West</topic><topic>Inequality</topic><topic>Labor economics</topic><topic>Lohnstruktur</topic><topic>Mindestlohn</topic><topic>Minimum wage</topic><topic>Part time employment</topic><topic>Wage differential</topic><topic>Workforce</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Bossler, Mario</creatorcontrib><creatorcontrib>Schank, Thorsten</creatorcontrib><collection>ECONIS</collection><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Journal of labor economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Bossler, Mario</au><au>Schank, Thorsten</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Wage Inequality in Germany after the Minimum Wage Introduction</atitle><jtitle>Journal of labor economics</jtitle><date>2023-07-01</date><risdate>2023</risdate><volume>41</volume><issue>3</issue><spage>813</spage><epage>857</epage><pages>813-857</pages><issn>0734-306X</issn><eissn>1537-5307</eissn><abstract>Monthly wage inequality in Germany continued to increase in the early 2000s, which is mainly explained by a rising part-time employment share. 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subjects | 2000-2016 Convergence Deutschland East and West Inequality Labor economics Lohnstruktur Mindestlohn Minimum wage Part time employment Wage differential Workforce |
title | Wage Inequality in Germany after the Minimum Wage Introduction |
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