Abstract

The project analyzes the effects of wage changes on labor demand in German establishments. For this purpose, we Conduct structural- and reduced-form panel estimations on the basis of different wage variables (labor costs, minimum wages, etc.). We pay pecial attention to the impact of frictions in the labor market, such as employer concentration and labor market tightness. The estimates are based on the administrative IAB employment data (BeH, BHP) and the IAB Establishment Panel.