Empirical studies on minimum wages are primarily concerned with employment while their effects on income inequality receive less attention. Yet, a popular argument for a federal minimum wage in Germany is that it will prevent in-work poverty and reduce income inequality. We examine this...

This paper investigates the degree of monoposony power of German employers in different industries, using a semi-structural approach based on a dynamic model of monopsonistic competition. The empirical analysis is based on a linked employer-employee data set which allows us to control for...