Since 2017 we have examined the effects of the statutory minimum wage for the Minimum Wage Commission. The aim of the current round is to identify the causal effects of the introduction of the minimum wage and of its subsequent increases on employment and unemployment. The project is divided into two parts that use different methods. The first part examines the effects by comparing units that are affected by the minimum wage to differing degrees, and deepens the analysis for two groups: young people aged 18 to 25, and persons without German citizenship. The second part draws on the analytical potential of the new Earnings Survey (“Verdiensterhebung”) and examines the effects by applying and further developing a bunching approach. This approach was already used in the previous round and is now being placed on a broader data basis.
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Project team
