Title : Unemployment Effects of the German Minimum Wage in an Equilibrium Job Search Model
Author(s) : Maximilian J. Blömer, Nicole Guertzgen, Laura Pohlan, Holger Stichnoth, Gerard J. van den Berg
Abstract : We structurally estimate an equilibrium search model using German administrative data and use the model for counterfactual analyses of a uniform minimum wage. The model with worker and firm heterogeneity does not restrict the sign of employment effects a priori; it allows for different job offer arrival rates for the employed and the unemployed and lets firms optimally choose their recruiting intensity. We find that unemployment is a non-monotonic function of the minimum wage level. Effects differ strongly by labor market segment defined by region, skill, and permanent worker ability.
Key-words : monopsony, wages, employment, productivity, structural estimation
JEL Classification : J31; J38; J42; J64
