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
Hauptverfasser: Bossler, Mario, Schank, Thorsten
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Schank, Thorsten
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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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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