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

Bloemer, Maximilian J. and Gürtzgen, Nicole and Pohlan, Laura and Stichnoth, Holger and van den Berg, Gerard J. (2024) Unemployment effects of the German minimum wage in an equilibrium job search model. LABOUR ECONOMICS, 91: 102626. ISSN 0927-5371, 1879-1034

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Abstract

We structurally estimate an equilibrium search model using German administrative data and use the model 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; it allows for different job offer arrival rates for the employed and the unemployed and lets firms optimally choose their recruiting intensity. We find that unemployment is a non-monotonic function of the minimum wage level. Effects differ strongly by labor market segment defined by region, skill, and permanent worker ability.

Item Type: Article
Uncontrolled Keywords: Monopsony; Wages; Employment; Productivity; Structural estimation
Subjects: 300 Social sciences > 330 Economics
Divisions: Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Lehrstuhl für Arbeitsmarktforschung (Professor Dr. Nicole Gürtzgen)
Depositing User: Dr. Gernot Deinzer
Date Deposited: 09 Dec 2025 07:14
Last Modified: 09 Dec 2025 07:14
URI: https://pred.uni-regensburg.de/id/eprint/64653

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