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.
- Language
-
Englisch
- Bibliographic citation
-
Series: IWH Discussion Papers ; No. 8/2023
- Classification
-
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
- Subject
-
minimum wage
pass-through
productivity
reallocation
- Event
-
Geistige Schöpfung
- (who)
-
Hälbig, Mirja
Mertens, Matthias
Müller, Steffen
- Event
-
Veröffentlichung
- (who)
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Halle Institute for Economic Research (IWH)
- (where)
-
Halle (Saale)
- (when)
-
2024
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Hälbig, Mirja
- Mertens, Matthias
- Müller, Steffen
- Halle Institute for Economic Research (IWH)
Time of origin
- 2024
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