Pros and cons of regional minimum wages in Germany: National minimum wage meets marked regional differences

Abstract

"The German minimum wage is set at the national level and applies equally to all regions. However, costs of living and wage levels differ markedly across German regions. The number of jobs directly affected by the minimum wage increase to 12 Euro on October 1, 2022, is much higher in peripheral, low-wage regions, as compared to more central locations where wages and costs of living are higher. At the same time, the purchasing power of the 12-Euro minimum wage is lower in high-cost locations such as Berlin or Munich. The report discusses the pros and cons of moving from a uniform minimum wage of 12 Euro, to a regional minimum wage that varies with the regional consumer price index and has a purchasing power of 12 Euro." (Author's abstract, IAB-Doku) ((en))

Cite article

Dauth, W. & Mense, A. (2022): Vor- und Nachteile einer Regionalisierung: Einheitlicher Mindestlohn trifft auf große regionale Unterschiede. (IAB-Kurzbericht 21/2022), Nürnberg, 8 p. DOI:10.48720/IAB.KB.2221