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Abbate, Nicolás & Bruno Jiménez (2026): Do minimum wage hikes lead to employment destruction? Evidence from a regression discontinuity design in Argentina. In: Journal of Development Economics, Jg. 178. DOI:10.1016/j.jdeveco.2025.103558

Abstract

"In this study, we examine the impact of eight minimum wage increases in Argentina during the early 21st century by analyzing administrative records of registered employment. Utilizing a regression discontinuity design, we compare job separation rates between a group affected by the minimum wage hikes and a control group slightly out of their legal scope. Our findings indicate that, overall, these minimum wage hikes had no significant impact on separation rates. However, the 2008 increase triggered a 4.8 percentage point (19%) decrease in separations, casting doubt on the disemployment effects of minimum wages. Overall, these findings suggest that during economic upswings, minimum wage increases may have little to no adverse impact on job destruction." (Author's abstract, IAB-Doku, © 2025 Elsevier B.V. All rights are reserved, including those for text and data mining, AI training, and similar technologies.) ((en))

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Biewen, Martin & Pascal Erhardt (2026): Using post-regularization distribution regression to measure the effects of a minimum wage on hourly wages, hours worked and monthly earnings. In: The econometrics journal, Jg. 29, H. 1, S. 87-105. DOI:10.1093/ectj/utaf014

Abstract

"We evaluate the distributional effects of a minimum wage introduction based on a data set with a moderate sample size but a large number of potential covariates. In this context, the selection of relevant control variables at each distributional threshold is crucial to test hypotheses about the impact of the continuous treatment variable. To this end, we use the post-double selection logistic distribution regression approach proposed by Belloni et al. (2018a), which allows for uniformly valid inference about the target coefficients of our low-dimensional treatment variables across the entire outcome distribution. Our empirical results show that the minimum wage replaced hourly wages below the minimum threshold, increased monthly earnings in the lower-middle segment but not at the very bottom of the distribution, and did not significantly affect the distribution of working hours." (Author's abstract, IAB-Doku) ((en))

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Bossler, Mario & Martin Popp (2026): Zu den Anträgen einer Reform des Mindestlohngesetzes. Stellungnahme des IAB zur öffentlichen Anhörung im Ausschuss für Arbeit und Soziales des Deutschen Bundestags am 12.1.2026. (IAB-Stellungnahme 01/2026), Nürnberg, 12 S. DOI:10.48720/IAB.SN.2601

Abstract

"Der Ausschuss für Arbeit und Soziales des Deutschen Bundestages hat am 12.1.2026 eine öffentliche Anhörung zu den beiden Anträgen „Mindestlohngesetz reformieren - 15 Euro pro Stunde sicherstellen“ und „Mindestlohn auf 15 Euro anheben und dauerhaft armutsfest machen“ durchgeführt, an der das IAB teilgenommen hat. In seiner Stellungnahme diskutiert das IAB die wissenschaftlichen Evaluationsergebnisse zum gesetzlichen Mindestlohn und beurteilt die Vorschläge zur Reform des Mindestlohngesetzes." (Autorenreferat, IAB-Doku)

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Bossler, Mario, Ying Liang & Thorsten Schank (2026): The devil is in the details: Heterogeneous effects of the German minimum wage on working hours and minijobs. In: Journal of Public Economics, Jg. 253, 2025-11-18. DOI:10.1016/j.jpubeco.2025.105540

Abstract

"Germany introduced a national minimum wage in 2015. While prior studies find limited effects on overall employment, we go into detail and examine its impact on working hours and minijobs. The minimum wage significantly reduces inequality in hourly and monthly wages. While average working hours remain stable, minijobbers experience notable cuts in working hours, which can be explained by the institutional context shaping the effects of the minimum wage. Employment in regular jobs remains unaffected, but minijobs decline, driven by transitions into both regular jobs and non-employment. The latter implies an employment elasticity of −0.16 for minijob employment. Following the first major minimum wage increase in 2022, we reveal a reduction in working hours that is not limited to minijobs, corresponding to an employment volume elasticity of −0.38." (Author's abstract, IAB-Doku, © 2025 The Authors. Published by Elsevier B.V.) ((en))

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Bossler, Mario & Martin Popp (2026): Labor Demand on a Tight Leash (im Erscheinen). In: ILR review, 2025-10-21.

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Faia, Ester, Benjamin Lochner & Benjamin Schoefer (2026): Monopsony, Markdowns, and Minimum Wages. (NBER working paper / National Bureau of Economic Research 34699), London, 80 S.

Abstract

"This paper presents the first direct test of two interlinked predictions at the core of the monopsony theory of the labor market: (i) that firms exploit wage-setting power by marking down wages below the marginal revenue product of labor, and (ii) that exogenous wage constraints, if binding, eliminate markdowns. Our research design revisits the 2015 introduction of a high minimum wage in Germany. Drawing on a monopsony model, we derive an empirically tractable difference-in-differences specification that provides a quantitative benchmark for the firm-level markdown response. Our main result is that empirical markdowns respond only 0–25% as much as the monopsony model would have predicted. Hence, at least for the labor market segment we study, (i) markdowns largely reflect other distortions than monopsony, (ii) markdowns are mismeasured, (iii) minimum wages induce widespread labor shortages, or (iv) the standard monopsony model does not provide a full, realistic account of the labor market." (Autorenreferat, IAB-Doku)

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Faia, Ester, Benjamin Lochner & Benjamin Schoefer (2026): Monopsony, Markdowns, and Minimum Wages. (CEPR discussion paper / Centre for Economic Policy Research 21058), London, 80 S.

Abstract

"This paper presents the first direct test of two interlinked predictions at the core of the monopsony theory of the labor market: (i) that firms exploit wage-setting power by marking down wages below the marginal revenue product of labor, and (ii) that exogenous wage constraints, if binding, eliminate markdowns. Our research design revisits the 2015 introduction of a high minimum wage in Germany. Drawing on a monopsony model, we derive an empirically tractable difference-indifferences specification that provides a quantitative benchmark for the firm-level markdown response. Our main result is that empirical markdowns respond only 0–25% as much as the monopsony model would have predicted. Hence, at least for the labor market segment we study, (i) markdowns largely reflect other distortions than monopsony, (ii) markdowns are mismeasured, (iii) minimum wages induce widespread labor shortages, or (iv) the standard monopsony model does not provide a full, realistic account of the labor market." (Author's abstract, IAB-Doku) ((en))

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Hijzen, Alexander, Mateo Montenegro & Ana Sofia Pessoa (2026): Minimum Wages in a Dual Labor Market: Evidence from the 2019 Minimum-Wage Hike in Spain. In: Labour Economics, Jg. 98. DOI:10.1016/j.labeco.2025.102826

Abstract

"This paper provides an assessment of the 2019 minimum-wage hike in Spain, which increased the minimum wage by 22% and directly concerned 7% of dependent employees. We make use of two complementary approaches, one that follows incumbent workers over time and hence does not take account of any possible effects on new hires, and one that tracks employment in wage bins over time and takes account of both separations and new hires. The results are as follows. First, the minimum wage hike significantly increased the wages of directly affected workers, with small positive wage spillovers on workers with initial wages just about the new minimum wage. Second, the increase in wages comes at the expense of a reduction in low-wage employment. While employment increases just above the minimum wage, it is not sufficient to offset the decline in employment below it. Third, the reduction in employment is mainly driven by a reduction in hires of workers on open-ended contracts and to a smaller extent job losses among workers on fixed-term contracts." (Author's abstract, IAB-Doku, © 2025 Elsevier B.V. All rights are reserved, including those for text and data mining, AI training, and similar technologies.) ((en))

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Hutter, Christian & Enzo Weber (2026): Wie die Arbeitsagenturen die Beschäftigungseffekte der jüngsten Mindestlohnerhöhung einschätzen. In: IAB-Forum H. 27.01.2026. DOI:10.48720/IAB.FOO.20260127.02

Abstract

"Zum 1. Januar 2026 wurde der allgemeine gesetzliche Mindestlohn von 12,82 Euro auf 13,90 Euro erhöht. Das Plus von 8,4 Prozent liegt damit deutlich über der vom Statistischen Bundesamt ermittelten allgemeinen Lohnsteigerung von 4,9 Prozent. Die überwiegende Mehrheit der Arbeitsagenturen erwartet laut einer Befragung dennoch keine negativen Effekte auf die Gesamtbeschäftigung. Die Minderheit der Agenturen mit negativen Erwartungen hat sich im Vergleich zur Erhöhung von 2022 allerdings verdreifacht. Bei sozialversicherungspflichtiger und geringfügiger Beschäftigung werden häufiger Änderungen erwartet, was auf Substitution zwischen den beiden Beschäftigungsformen hindeuten könnte." (Autorenreferat, IAB-Doku)

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Matsue, Toyoki, Mitsuru Ueshina & Hiroki Aso (2026): Dynamic Analysis of the Effect of Minimum Wage on Economic Growth, Public Debt, and Welfare. In: Metroeconomica, Jg. 77, H. 1, S. 55-70. DOI:10.1111/meca.12509

Abstract

"This study analyzes the effect of minimum wage on growth and welfare under government debt. We assume minimum wage causes unemployment and that the government finances unemployment benefits via taxes and public debt. This study shows that there is an optimal minimum wage level that maximizes long-term economic growth, which increases with the ratio of fiscal deficit to GDP. Moreover, the effect of introducing a minimum wage on the welfare of each generation varies across generations. Specifically, the introduction of minimum wage worsens the welfare of future generations but improves that of the initial generation compared to the balanced-budget rule." (Author's abstract, IAB-Doku) ((en))

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Rao, Nirupama L. & Max Risch (2026): Who’s Afraid of the Minimum Wage? Measuring the Impacts on Independent Businesses Using Matched U.S. Tax Returns. In: The Quarterly Journal of Economics, Jg. 141, H. 1, S. 373-427. DOI:10.1093/qje/qjaf053

Abstract

"A common concern surrounding minimum wage policies is their impact on independent businesses, which are often feared to be less able to bear or pass on cost increases. We examine how these typically small and medium-size firms accommodate minimum wage increases along product and labor market margins using a matched owner-firm-worker panel data set drawn from the universe of U.S. tax records over a 10-year period, and using state minimum wage changes as identifying variation. We find that on average, firms in highly exposed industries do not substantially reduce employment—they do not lay off workers but moderately reduce part-time hiring. Instead, these firms are able to fully finance the new labor costs with new revenues, leaving average owner profits unchanged. Higher wage floors, however, forestall entry, particularly for less productive firms, reducing the number of independent firms operating in these industries by roughly 2%. Yet these industries do not shrink; instead, incumbent responses and strong positive selection among entrants reshape industries that rely heavily on low-wage workers, yielding fewer but more productive firms after the cost shock. We also take a worker-level perspective to examine how potentially vulnerable individuals are affected by minimum wage increases. Using panels of low-earning and young workers, we find that their average earnings rise substantially with the minimum wage, while they are no less likely to be employed. Worker transitions indicate that minimum wage increases boost retention and that worker reallocation from independent firms toward corporations buffers disemployment impacts from reduced hiring at independent firms." (Author's abstract, IAB-Doku) ((en))

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Sell, Stefan (2026): Der Mindestlohn und seine Höhe zwischen regelbasierter Anpassung und einer „Gesamtabwägung“. In: Soziale Sicherheit, Jg. 74, H. 6, S. 10-16.

Abstract

"Zur Einstimmung in die Auseinandersetzung mit der Frage, wie hoch der allgemeine gesetzliche Mindestlohn sein sollte, müsste und könnte, lohnt ein kurzer Blick zurück. Die nach langer kontroverser Diskussion zum 1. Januar 2015 erfolgte Einführung des gesetzlichen Mindestlohnes (als Lohnuntergrenze für fast alle) fiel zum einen in eine arbeitsmarktlich günstige Zeit, in der die Beschäftigungszahlen stiegen und die Wirtschaft wuchs. Zum anderen aber ist die damalige Höhe von 8,50 Euro nicht als sachlogisches Analyseergebnis vom Himmel gefallen. Sie ist zu verstehen als ein relativ niedrig dimensionierter Einstieg in die Mindestlohn-Welt – zum einen aus politischen Durchsetzbarkeitsgründen, zum anderen aber auch, weil man damals sich nicht wirklich sicher war, ob und welche Arbeitsmarkteffekte der Mindestlohn haben wird." (Textauszug, IAB-Doku)

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Taskin, Ahmet Ali & Britta Gehrke (2026): Minimum wage and job reallocation: The hidden role of financial constraints. In: IAB-Forum H. 15.01.2026. DOI:10.48720/IAB.FOO.20260115.02

Abstract

"When Germany introduced its federal statutory minimum wage of 8.50 euro in 2015, it marked a major shift in labour policy. Fast forward to 2025, and the minimum wage is now 12.82 euro. Given annual increases in the minimum wage, there are ongoing debates about how minimum wages affect income inequality. It turns out the answer depends heavily on the financial strength of the firms." (Author's abstract, IAB-Doku) ((en))

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Albagli, Pinjas, Rui Costa & Stephen Machin (2025): Minimum wage effects: adjustment through labour market dynamics and alternative work arrangements. A report for the Low Pay Commission. (CEP report 49), London: Centre for Economic Performance, LSE, 96 S.

Abstract

"This report investigates the UK's 2016 National Living Wage (NLW) introduction, focusing on firm adjustment through labour market transitions and job contract amendments. The NLW boosted worker wages, and whilst there was no change in total employment, firms adjusted through changes in employment composition and by altering employment contracts. The NLW spurred increased transitions from temporary to permanent roles, reduced underemployment, and shifted workers away from non-standard arrangements like part-time roles. However, a modest rise in zero-hour contracts among exposed workers reflects the nuanced nature of these adjustments. These contract changes, and shifts in composition and transition dynamics, provide insights into ways in which employers adjustment to cost shocks induced by minimum wage increases, and how at the same time they maintain employment stability and reshape within-firm job and career structures." (Author's abstract, IAB-Doku) ((en))

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Albertini, Julien, Arthur Poirier & Anthony Terriau (2025): Payroll Tax Reductions on Low Wages and Minimum Wage in France. (Working paper / GATE Lyon Saint-Étienne 202501), Lyon ; Saint-Étienne, 44 S.

Abstract

"Introduced in France in the 1990s to reduce the cost of low-skilled labor, payroll tax reductions on low wages were later expanded and extended to higher wages. This study evaluates the impact of the current payroll tax schedule on employment, fiscal surplus, and welfare. We develop a life-cycle matching model in which workers are heterogeneous in terms of age, education, human capital, family status, hours worked and idiosyncratic productivity, and where search effort, hiring and separations are endogenous. Accounting for interactions with the socio-fiscal system, we demonstrate that reducing payroll tax cuts for low wages would result in declines in both employment and fiscal surplus. Furthermore, we show that increasing the minimum wage would significantly reduce employment and fiscal surplus, with the magnitude of the effect depending on whether the payroll tax schedule and other socio-fiscal measures are indexed to the minimum wage. Lastly, we identify the optimal payroll tax schedule, revealing that employment, fiscal surplus, and welfare can all be improved by increasing payroll tax reductions for wages near the minimum wage while reducing them for wages exceeding twice the minimum wage." (Author's abstract, IAB-Doku) ((en))

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Appler, Felix, Christine Aumayr-Pintar & Carlos Vacas‑Soriano (2025): Minimum wages in 2025. Annual review. (Eurofound research report / European Foundation for the Improvement of Living and Working Conditions), Luxembourg, 74 S. DOI:10.2806/6315456

Abstract

"2024 was an eventful year for minimum wage regulations in most EU Member States, as the EU Minimum Wage Directive had to be transposed into national legislation by mid November. Therefore, the regular discussions on setting rates for 2025 were sometimes overshadowed by discussions regarding the required adaptations to national regulations. Most countries managed to transpose the directive by the deadline or with a short delay but still within the year. However, in a few countries, the full transposition was still pending as of mid-March 2025. This year’s edition of the annual review on minimum wages provides a comprehensive overview of recent developments. The first two chapters present the usual summaries of how national minimum wages (and collectively agreed minimum wages in countries without a national minimum wage) were set and developed for 2025. Chapter 3 focuses on the new minimum wage regulations, providing a comparative analysis of how Member States with statutory minimum wages have implemented various articles and aspects of the directive. It examines the indicative reference values adopted, the consultative bodies designated or set up, criteria that wage-setters are required to consider when uprating, approaches to variations in minimum wages and measures to promote collective bargaining. Chapter 4 focuses on minimum wage earners and their ability to afford housing, based on analysis of the latest data from the European Union Statistics on Income and Living Conditions (EU-SILC). Furthermore, this report is accompanied by two related Eurofound working papers. The first presents three country examples of how Member States have approached their adequacy assessments in the context of the Minimum Wage Directive (Eurofound, 2025a). The second provides an overview of recent research publications on minimum wages, mainly published in 2024 (Eurofound, 2025b). Finally, Eurofound’s minimum wage country profiles complement this report by providing detailed background information on how minimum wage setting is regulated and functions in the EU Member States and Norway." (Text excerpt, IAB-Doku) ((en))

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Bachmann, Ronald, Martin Biewen, Julia Bredtmann, Natalie Herdegen, Lukas Jonas, Roman Klauser, Philipp Kugler & Daniel Monsees (2025): Abschlussbericht zum Forschungsvorhaben "Auswirkungen des gesetzlichen Mindestlohns auf Löhne und Arbeitszeiten (MLK-027)". Studie im Auftrag der Mindestlohnkommission. Berlin, 153 S.

Abstract

"Die vorliegende Studie liefert deskriptive und kausale Evidenz zu den Auswirkungen der Mindestlohnerhöhung von 9,82 auf 12 Euro im Oktober des Jahres 2022 auf Stunden- und Monatslöhne, Lohnungleichheit, Arbeitszeit und Arbeitsvolumen. Datengrundlage ist die Verdienststrukturerhebung (VSE) der Jahre 2014 und 2018 sowie die Verdiensterhebung (VE) der Jahre 2022 und 2023." (Textauszug, IAB-Doku)

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Balleer, Almut, Britta Gehrke & Ahmet Ali Taskin (2025): Mindestlohn als Stresstest: Finanzielle Spielräume. In: Wirtschaftsdienst, Jg. 105, H. 10, S. 758-762. DOI:10.2478/wd-2025-0191

Abstract

"Die Einführung des gesetzlichen Mindestlohns von 8,50 € in Deutschland im Jahr 2015 führte zu einer Umverteilung der Beschäftigung zwischen Unternehmen. Während die Gesamtbeschäftigung stabil blieb, passten sich Unternehmen je nach finanzieller Ausstattung und Betroffenheit unterschiedlich erfolgreich an, mit entsprechend unterschiedlichen Folgen für ihre Beschäftigten. Vor dem Hintergrund der geplanten Erhöhung auf 14,60 € bis 2027 analysieren wir anhand kombinierter Beschäftigten- und Unternehmensdaten die Entwicklungen vor und nach der Mindestlohneinführung 2015, um die heterogenen Wirkungen auf Beschäftigung und Lohnstruktur aufzuzeigen. Finanzierungsengpässe erweisen sich als entscheidender Faktor für die Anpassungsfähigkeit von Unternehmen an Lohnerhöhungen." (Autorenreferat, IAB-Doku)

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Baumann, Arne (2025): What Explains Differences in Minimum Wage Growth Between EU Member States? In: Jahrbücher für Nationalökonomie und Statistik, Jg. 245, H. 1/2, S. 7-44. DOI:10.1515/jbnst-2023-0039

Abstract

"There are considerable differences in minimum wage growth between EU member states with national minimum wages. Potential sources for these differences are discrepancies in economic fundamentals and institutional differences in how minimum wages are adjusted. Using a novel dataset based on macroeconomic data, institutional information on minimum wage setting and data on economic policy orientation and elections, the article tests whether growth differences in the minimum wage of 21 EU member states during the time period 2000 to 2020 can be explained by a catch-up dynamic in new EU member states, by different growth models of EU member states or by differences in the actors that are responsible for the adjustment of minimum wages. The results show that across the entire sample and irrespective of actors, minimum wage growth follows consumer price inflation and wage growth most closely. Higher than average minimum wage growth rates in EU member states stem from overshooting inflation during the period of EU accession, reducing wage inequality and increasing the Kaitz index. Actors also mattered for minimum wage growth. Adjustments by social partner consensus led to higher minimum wage growth than the benchmark of indexed minimum wages, introducing a distributive element to minimum wage adjustments." (Author's abstract, IAB-Doku) ((en))

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Becker, Irene & Benjamin Held (2025): Menschenwürdiges Existenzminimum – auch ein Thema der Arbeitsmarktpolitik. In: Sozialmagazin H. 7/8, S. 14-23. DOI:10.3262/SM2508014

Abstract

"Die aktuelle Grundsicherung in Deutschland wird dem verfassungsrechtlich gebotenen Anspruch auf ein menschenwürdiges Existenzminimum nicht gerecht. Dieses methodisch und empirisch begründete Ergebnis tangiert neben sozialpolitischen auch lohnpolitische Handlungsfelder und ist so auch ein Thema der Arbeitsmarktpolitik. Mit einem schlüssigen Reformkonzept wird eine Grundlage für die Bemessung von Bürgergeld und Co. sowie die Mindestlohnpolitik vorgestellt." (Autorenreferat, IAB-Doku)