On the basis of a structural labor demand model employment effects of a minimum wage are estimated from a single cross-sectional wage distribution. The main contribution of the paper is to relax restrictive functional form assumptions of earlier papers by introducing more flexible...

We use a 100% sample of social security panel micro data for estimating the effects of a minimum wage in the German construction sector. In 1997, a wage floor was introduced at different rates in West and East Germany. For analysing the impact of this natural experiment we conceptually follow a...