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

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))

Cite article

Taskin, A. & Gehrke, B. (2026): Minimum wage and job reallocation: The hidden role of financial constraints. In: IAB-Forum No. 15.01.2026. DOI:10.48720/IAB.FOO.20260115.02