International Economic Review· 2026Q1
Gendered Effects of the Minimum Wage
- 2citations
- Q1SCImago
- 2026year
Short summary
Germany's €8.50 minimum wage reallocated women to higher-hours jobs and reduced non-employment, with stronger enforcement amplifying this effect.
AI-generated from the title and abstract; the full text is not read.
Key points
- Germany's €8.50 minimum wage shifted women to jobs with more hours and decreased non-employment.
- Firm adjustments (e.g., wage increases) dampened the direct impact of the minimum wage.
- Stronger enforcement of the minimum wage amplified the reallocation of women to higher-hours jobs.
- Increasing the minimum wage to €11 reduced the gender income gap, with 44.8% of this reduction attributed to changes in hours worked.
AI-generated from the title and abstract; the full text is not read.
Abstract
ABSTRACT Women work disproportionately in low‐hours jobs, which pay lower wages and are more exposed to minimum‐wage policies. We estimate an equilibrium search model with worker and firm heterogeneity, jobs differing in wages and hours, and imperfect compliance. Applied to Germany, the 8.50 € minimum wage reallocates women toward higher‐hours jobs and reduces non‐employment, although firm adjustments dampen this effect. Stronger enforcement amplifies the reallocation. Raising the minimum wage up to 14 € reduces gender gaps in wages and hours; at 11 €, changes in hours account for 44.8% of the reduction in the gender income gap.
The authors' abstract, as published at the source. International Economic Review, 2026 · DOI ↗
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Field: Economics and Econometrics
Economics and EconometricsEconomics, Econometrics and Finance