Arbeitspapier

Minimum wages, productivity, and reallocation

We study the productivity effect of the German national minimum wage combining administrative firm datasets. We analyze firm- and market-level effects, considering output price changes, factor substitution, firm entry and exit, labor reallocation, and short- versus long-run effects. We document higher firm productivity even net of output price increases. Productivity gains are persistent in manufacturing and service sectors. The minimum wage also increased manufacturing productivity at the aggregate level. Neither firm entry and exit nor other forms of employment reallocation between firms contributed to these gains. Instead, aggregate productivity gains from the minimum wage solely stem from within-firm productivity improvements.

Sprache
Englisch

Erschienen in
Series: IWH Discussion Papers ; No. 8/2023

Klassifikation
Wirtschaft
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Wage Level and Structure; Wage Differentials
Production, Pricing, and Market Structure; Size Distribution of Firms
Firm Performance: Size, Diversification, and Scope
Thema
minimum wage
pass-through
productivity
reallocation

Ereignis
Geistige Schöpfung
(wer)
Hälbig, Mirja
Mertens, Matthias
Müller, Steffen
Ereignis
Veröffentlichung
(wer)
Halle Institute for Economic Research (IWH)
(wo)
Halle (Saale)
(wann)
2024

Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Hälbig, Mirja
  • Mertens, Matthias
  • Müller, Steffen
  • Halle Institute for Economic Research (IWH)

Entstanden

  • 2024

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