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Effects of the German Minimum Wage on Earnings and Working Time Using Establishment Data

Author

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  • Ohlert Clemens

    (Federal Institute for Occupational Safety and Health (BAuA) 84645 , Berlin, Germany)

Abstract

This study examines the short-term effects of the introduction of a statutory minimum wage in Germany on hourly wages, monthly wages and paid working hours. We exploit a novel panel dataset by linking the Structure of Earnings Survey (SES) 2014 and the Earnings Survey (ES) 2015 and apply a difference-in-differences approach at the establishment level. The results indicate an effect of the introduction of the statutory minimum wage on the average hourly wages of employees in minimum wage establishments of up to 5.9 %. Due to negative effects on average working time of approximately minus 3.1 %, the effects on monthly gross earnings are smaller but still amount to up to 2.7 % on average. The results further suggest that the minimum wage effects on earnings were greater among low-wage employees than on average, in eastern Germany than in western Germany, and among part-time employees and marginal employees than among full-time employees.

Suggested Citation

  • Ohlert Clemens, 2025. "Effects of the German Minimum Wage on Earnings and Working Time Using Establishment Data," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 245(1-2), pages 185-213.
    • Handle: RePEc:jns:jbstat:v:245:y:2025:i:1-2:p:185-213:n:1008
    DOI: 10.1515/jbnst-2024-0025
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    More about this item

    Keywords

    minimum wage; evaluation; hourly wages; earnings; working time;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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