Dustmann, C;
Lindner, A;
Schönberg, U;
Umkehrer, M;
vom Berge, P;
(2021)
Reallocation Effects of the Minimum Wage.
The Quarterly Journal of Economics
10.1093/qje/qjab028.
(In press).
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Abstract
We investigate the wage, employment and reallocation effects of the introduction of a nationwide minimum wage in Germany that affected 15% of all employees. Based on identification designs that exploit variation in exposure across individuals and local areas, we find that the minimum wage raised wages, but did not lower employment. It also led to the reallocation of low-wage workers from smaller to larger, from lower- to higher-paying, and from less- to more-productive establishments. This worker upgrading accounts for up to 17% of the wage increase induced by the minimum wage. Moreover, at the regional level, average establishment quality increased in more affected areas in the years following the introduction of the minimum wage.
| Type: | Article |
|---|---|
| Title: | Reallocation Effects of the Minimum Wage |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1093/qje/qjab028 |
| Publisher version: | https://doi.org/10.1093/qje/qjab028 |
| Language: | English |
| Additional information: | © The Author(s) 2021. Published by Oxford University Press on behalf of President and Fellows of Harvard College. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/). |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10136135 |
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