Minimum wages, productivity, and reallocation / Mirja Hälbig, Matthias Mertens, Steffen Müller ; editor: Halle Institute for Economic Research (IWH) - Member of the Leibniz Association
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Minimum wages, productivity, and reallocation
Discovery
1886466955
URN
urn:nbn:de:gbv:3:2-1059395
DOI
ISBN
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Publication history
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, [2024?]
Content
1 Online-Ressource (III, 75 Seiten, 0,92 MB) : Diagramme
Edition
This version: 12.04.2024
Language
eng
Comment
Literaturverzeichnis: Seite 74-75
Abstract
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.
Series
IWH-Diskussionspapiere ; 2023, no. 8 (April 2023) [rev.] ppn:837399270