• Medientyp: Bericht; E-Book
  • Titel: Employment and Reallocation Effects of Higher Minimum Wages
  • Beteiligte: Drechsel-Grau, Moritz [Verfasser:in]
  • Erschienen: Munich: Center for Economic Studies and ifo Institute (CESifo), 2023
  • Sprache: Englisch
  • Schlagwörter: hours worked ; transition dynamics ; worker and firm heterogeneity ; reallocation ; J38 ; E24 ; J31 ; E25 ; E64 ; equilibrium search-and-matching model ; employment ; J20 ; minimum wage ; job search
  • Entstehung:
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  • Beschreibung: This paper studies the employment and reallocation effects of minimum wages in Germany in a search-and-matching model with endogenous job search effort and vacancy posting, multiple employment levels, a progressive tax-transfer system, and worker and firm heterogeneity. I find that minimum wages up to 70% of the median wage significantly increase productivity, hours worked and output without reducing employment. In frictional labor markets, however, reallocation takes time whenever the minimum wage cuts deep into the wage distribution. I show that gradually implementing a high minimum wage is necessary to avoid elevated unemployment rates during the transition.
  • Zugangsstatus: Freier Zugang