Abstract

The project aims to investigate the impact of a substantial wage increase in the care sector on employment and prices. In 2021, the German Bundestag passed the Health Care Development Act (GVWG), which entered into force on September 1, 2022. This meant that only companies could bill long-term care insurance if they paid at least according to the collective agreement. For many companies, this meant a substantial wage increase. Based on this variation, the project aims to investigate the effects this had on wages, employment, and prices in the care sector. IEB data will be used for labor market effects, and data from the nursing care statistics for prices in care.