Spatial Implications of Minimum Wages

Arbeitspapier

This paper addresses possible consequences of a minimum wage in a spatial context. An empirical analysis utilizing German data shows that a signifcant spatial wage structure exists and that, as a consequence, the share of workers earning wages below a minimum wage will be particularly high in rural counties even if we control for educational and occupational differences. A theoretical analysis discusses the implications for the spatial structure of the economy and shows that while the wages in the countryside will be affected positively, wages will decline in the city, where employment and population rise. Workers in the city will further suffer from an increase in housing costs. This supports concerns that urban poverty might increase as a result of the introduction of a minimum wage.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ifo Working Paper ; No. 66

Classification and Topics

• Classification: Wirtschaft ; Wages, Compensation, and Labor Costs: General ; Mobility, Unemployment, Vacancies, and Immigrant Workers: General ; Size and Spatial Distributions of Regional Economic Activity
• Subject: Minimum Wages ; Urban Poverty ; Spatial Wage Structure ; Mobility ; Economies of Agglomeration

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Büttner, Thiess ; Ebertz, Alexander
• Event: Veröffentlichung
• (who): ifo Institute - Leibniz Institute for Economic Research at the University of Munich
• (where): Munich
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/73762
• Last update: 10.03.2025, 11:41 AM CET