Do minimum wages improve self-rated health? Evidence from a natural experiment

Abstract

"We analyze whether the introduction of the general minimum wage in Germany in 2015 had an effect on workers’ self-rated health. To this end, we use survey data linked to administrative employment records and apply difference-in-differences regressions combined with propensity score matching. This approach enables us to control for a vast set of potential confounding variables. We find a health improving effect among the individuals who were most likely to be affected by the reform. Our results indicate that workers’ improved satisfaction with pay, their reduced working hours, and a reduction in time pressure at work may drive this result." (Author's abstract, © 2021 Springer) ((en))

Cite article

Hafner, L. & Lochner, B. (2022): Do minimum wages improve self-rated health? Evidence from a natural experiment. In: Empirical economics, Vol. 62, No. 6, p. 2989-3014. DOI:10.1007/s00181-021-02114-3