Economics, Econometrics and Finance
10 months ago

Higher minimum wages in Germany boost productivity and output without job losses.

2 views
SSRN Electronic Journal
Employment and Reallocation Effects of Higher Minimum Wages
Moritz Drechsel-Grau

Paper Summary

Minimum wages in Germany can boost productivity and output without reducing employment, as long as they are not too high. However, it takes time for the labor market to adjust when minimum wages are set too high. To prevent high unemployment rates, it is important to gradually introduce a high minimum wage.

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