We study the impact of the minimum wage hike in Seattle from $9.47 to $13 on wagebill, labor demand, and firm revenue using administrative data from the state of Washington. We show that the minimum wage affected businesses both at the intensive and extensive margins. At the intensive margin,...

We study the impact of the minimum wage hike in Seattle from $9.47 to $13 on wagebill, labor demand, and firm revenue using administrative data from the state of Washington. We show that the minimum wage affected businesses both at the intensive and extensive margins. At the intensive margin,...

Economists increasingly refer to monopsony power to reconcile the absence of negativeemployment effects of minimum wages with theory. However, systematic evidence for themonopsony argument is scarce. In this paper, I perform a comprehensive test of monop-sony theory by using labor market...

Economists increasingly refer to monopsony power to reconcile the absence of negative employment effects of minimum wages with theory. However, systematic evidence for the monopsony argument is scarce. In this paper, I perform a comprehensive test of monopsony theory by using labor market...

We estimate the effect of the introduction of the UK’s National Living Wage in 2016, and increases in it up to 2019, using a new empirical method. We apply a bunching approach to a setting with no geographical variation in minimum wage rates. We effectively compare employment changes in each...

This study uses employment data on California county-industry pairs (CIPs) between 1990 and 2016 to test whether minimum wage increases caused employment growth to slow most in the CIPS with a large share of low wage workers. Evidence supports the hypothesis, and we use the estimates to simulate...

Several empirical minimum wage studies have recently been published that simulate employment effects of a federal minimum wage in Germany. We disentangle various factors that explain the variation in previous simulation results. Based on data from the German Socio-Economic Panel and the newly...

Eine aktuelle Studie des DIW Berlin untersucht die zu erwartenden Effekte auf die Beschäftigungsnachfrage eines bundesweiten Mindestlohns von 7,50 Euro. Da seine Einführung mit einem erheblichen Anstieg der Bruttolöhne im unteren Bereich der Lohnverteilung verbunden wäre, besteht die Gefahr...

In den letzten Jahren sind verschiedene empirische Studien zu den Beschäftigungswirkungen eines gesetzlichen Mindestlohns in Deutschland erschienen. Die Bandbreite der simulierten Job-Verluste reicht von 140 000 bis 1,2 Millionen. Eine neue Studie des DIW Berlin auf der Basis von Daten des...

In this paper employment effects of a sectoral minimum wage in the German construction sector are estimated from a single cross-sectional wage distribution using parametric and semi-parametric models. Parametric functional form assumptions seem too restrictive and lead to implausible results. We...