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Minimum wage and job reallocation: The hidden role of financial constraints

The introduction of Germany’s minimum wage in 2015 triggered large shifts in the composition and allocation of types of employment.

The introduction of Germany’s minimum wage in 2015 did not cause substantial changes to overall employment; rather, it triggered large shifts in the composition and allocation of types of employment. How were financially constrained firms affected and how did they adapt following the introduction of the minimum wage?

IAB-Forum: Minimum wage and job reallocation: The hidden role of financial constraints