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Reallocation Effects of the Minimum Wage

Open access
Dustmann, Christian, Lindner, Attila, Schönberg, Uta, Umkehrer, Matthias, vom Berge, Philipp·2021·The Quarterly Journal of Economics

Abstract

We investigate the wage, employment, and reallocation effects of the introduction of a nationwide minimum wage in Germany that affected 15% of all employees. Based on identification designs that exploit variation in exposure across individuals and local areas, we find that the minimum wage raised wages but did not lower employment. It also led to the reallocation of low-wage workers from smaller to larger, from lower- to higher-paying, and from less to more productive establishments. This worker upgrading accounts for up to 17% of the wage increase induced by the minimum wage. Moreover, at the regional level, average establishment quality increased in more affected areas in the years following the introduction of the minimum wage.

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Metadata

Authors
Dustmann, C., Lindner, A., Schönberg, U., Umkehrer, M., & vom Berge, P.
Venue
The Quarterly Journal of Economics
Published
2021-08-20
Volume
137
Issue
1
Pages
267-328
ISSN
  • 0033-5533 (ISSN-L)
  • 1531-4650
OpenAlex
W3008632805
Cited by
322
References
42
FWCI
36.67
Type
journal article
Language
en
Open access
hybrid

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CoChat. (2026). Citation check: Reallocation Effects of the Minimum Wage. https://app.cochat.ai/papers/10.1093/qje/qjab028
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Dustmann, C., Lindner, A., Schönberg, U., Umkehrer, M., & vom Berge, P. (2021). Reallocation Effects of the Minimum Wage. The Quarterly Journal of Economics. https://doi.org/10.1093/qje/qjab028

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