Unemployment effects of the German minimum wage in an equilibrium job search model


Blömer, Maximilian ; Guertzgen, Nicole ; Pohlan, Laura ; Stichnoth, Holger ; Berg, Gerard J. van den


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URL: https://ub-madoc.bib.uni-mannheim.de/46517
URN: urn:nbn:de:bsz:180-madoc-465179
Document Type: Working paper
Year of publication: 2018
The title of a journal, publication series: ZEW Discussion Papers
Volume: 18-032
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: J31 , J51 , J64,
Keywords (English): Wages , job durations , work , employment , productivity , structural estimation
Abstract: We structurally estimate an equilibrium search model using German administrative data and use this for counterfactual analyses of a uniform minimum wage. The model with worker and firm heterogeneity does not restrict the sign of employment effects a priori and allows for different job offer arrival rates for the employed and the unemployed. We find that unemployment is a non-monotonic function of the minimum wage level. Effects differ strongly by labour market segment. Cross-segment variation of the estimated effects is mostly driven by firm productivity levels rather than by search frictions or the opportunity cost of employment.

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Blömer, Maximilian ; Guertzgen, Nicole ; Pohlan, Laura ; Stichnoth, Holger ; Berg, Gerard J. van den (2018) Unemployment effects of the German minimum wage in an equilibrium job search model. Open Access ZEW Discussion Papers Mannheim 18-032 [Working paper]
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