Effects of the Minimum Wage on Competitive Conditions and Solo Self-employment
Effects of the Minimum Wage on Competitive Conditions and Solo Self-employment
The project examines the economic effects of the increase in the statutory minimum wage to 12 euros in October 2022 on solo self-employment as well as on competitive and market structures in Germany. While previous studies have analyzed earlier minimum wage adjustments, there is still no causal evaluation of this most recent and exceptionally large increase based on current firm-level data—an important research gap this project aims to fill. Methodologically, the study combines descriptive analyses with a difference-in-differences approach and draws on the Mannheim Enterprise Panel (MUP) and the Integrated Employment Biographies (IEB). By calculating regional and sector-specific minimum wage exposure and linking firm-level and employee data, the project enables a robust identification and causal interpretation of changes in solo self-employment, competitive intensity, and market structure.