SEEK Project 2014: Evaluating the Introduction of a Uniform Minimum Wage in Germany: A Structural Equilibrium Job Search Approach

SEEK Project 2014: Evaluating the Introduction of a Uniform Minimum Wage in Germany: A Structural Equilibrium Job Search Approach

The objective of the project is to develop an econometric structural equilibrium search model that can be used for ex-ante simulations of the introduction of a uniform minimum wage in Germany. The target of the model is to improve our understanding of the magnitude of search frictions and the extent of employers’ resultant market power on the German labour market. To accommodate a wide range of employment effects, we will base our model primarily on the work of Bontemps, Robin and van den Berg (1999), whose model allows for negative, zero or positive employment effects. Our estimations for the model will be based on large-scale administrative German data. We will then validate our model by comparing its predictions to the results from quasi-experimental studies on the introduction and changes in sectoral minimum wages. Finally, we will use the model to conduct a number of policy simulations, including the systematic variation of the level of a uniform minimum wage over a large range of values.

Project members

Nicole Gürtzgen

Nicole Gürtzgen

Coordinator
Research Associate

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Holger Stichnoth

Holger Stichnoth

Coordinator
Leitung

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Laura Pohlan

Laura Pohlan

Junior Research Associate

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Bernd Fitzenberger

Bernd Fitzenberger

Research Associate

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Gerard J. van den Berg

Gerard J. van den Berg

Research Associate

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Contact

Research Associate, Prof. Dr. Nicole Gürtzgen
Head, Prof. Dr. Holger Stichnoth
Telefon +49 (0)621 1235-362