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Effects of the German Minimum Wage on Wages and Household Income

Author

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  • Pusch Toralf

    (WSI, Hans-Böckler-Stiftung, Georg-Glock-Str. 18, Düsseldorf, 40474, Germany)

Abstract

This article examines the effects of the introduction of the statutory minimum wage on the distribution of individual income from wages, as well as gross and net means-weighted income of workers in Germany. For the first time, data from the Survey of Income and Consumption was used, in which incomes are recorded in great detail. Both descriptive findings and the results of Unconditional Quantile Regressions indicate that the incomes of workers in regions with a high level of minimum wage intervention experienced significant increases after the introduction of the minimum wage, ranging into the middle band of the income distribution. Accordingly, the minimum wage has positively influenced the incomes of a large number of employee households.

Suggested Citation

  • Pusch Toralf, 2025. "Effects of the German Minimum Wage on Wages and Household Income," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 245(1-2), pages 153-183.
    • Handle: RePEc:jns:jbstat:v:245:y:2025:i:1-2:p:153-183:n:1001
    DOI: 10.1515/jbnst-2023-0024
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    More about this item

    Keywords

    minimum wage; income distribution; Germany; Unconditional Quantile Regressions;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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