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

B-Tier
Journal: Labour Economics
Year: 2024
Volume: 91
Issue: C

Authors (5)

Blömer, Maximilian J. (ifo Institut - Leibniz-Institu...) Guertzgen, Nicole (not in RePEc) Pohlan, Laura (not in RePEc) Stichnoth, Holger (Leibniz-Zentrum für Europäisch...) van den Berg, Gerard J. (not in RePEc)

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:labeco:v:91:y:2024:i:c:s0927537124001222
Journal Field
Labor
Author Count
5
Added to Database
2026-01-24