Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/311949 
Authors: 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17510
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper analyzes the horizontal spillover effects of Germany's first sectoral minimum wage. Using a difference-in-differences estimation, I examine the impact of the public announcement and introduction of the minimum wage on sub-minimum wage workers in related jobs outside the minimum wage sector, defined using employment flows. I find an increase in wages and job-to-job transitions for sub-minimum wage workers in related jobs. The spillover effects are driven by workers who reallocate to better-paying establishments, have low labor market experience, and are more closely connected to the minimum wage sector by having former coworkers in that sector.
Subjects: 
spillover
outside option
labor market frictions
minimum wages
JEL: 
J31
J38
J42
J62
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.