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Title page
Contents
Abstract 3
1. Introduction 4
2. Data and Descriptive Results 8
2.1. Data Sources 8
2.2. Treatment Indicator 10
2.3. Descriptive Statistics 10
3. Empirical Approach 14
4. Results 18
4.1. Long-Term Effects of the Minimum Wage Introduction 18
4.2. Effects of the Minimum Wage Increases 21
4.3. Effects of the Minimum Wage for Switching Treatment Groups 24
4.4. Staggered Treatment Adoption 26
4.5. Robustness Analysis 28
4.6. Comparison with the Literature 31
5. Conclusion 32
References 35
Appendix 38
Supplementary Appendix 49
Table 1. Effects of the minimum wage introduction on regional employment 19
Table 2. Effects of the minimum wage introduction and its raises on regional employment 23
Table 3. Effects of the minimum wage introduction on regional employment with multiple treatment groups 25
Figure 1. Regional wage gap to €8.50 in 2014 (left) and to €9.19 in 2018 (right) 12
Figure 2. Treatment groups based on the wage gaps in 2014 and 2018 13
Figure 3. Effect of the minimum wage on employment 20
Figure 4. Effect of the minimum wage on employment interacted with the regional economic growth 22
Figure 5. Effect of the minimum wage on employment with staggered treatment adoption and different estimators 27
Table A.1. Development of the minimum wage level in Germany 39
Table A.2. Descriptive statistics for labour market regions prior to the introduction and the increase of the minimum wage 43
Table A.3. Descriptive statistics for labour market regions grouped according to their treatment status in 2014 and 2018 44
Table A.4. Effects of the minimum wage introduction on regional employment with a continuous treatment variable 45
Table A.5. Effects of the minimum wage introduction on regional employment with a longer pre-treatment period 46
Table A.6. Effects of the minimum wage introduction on regional employment with multiple treatment groups and a bite measure for 2018 that is only updated... 47
Table A.7. Effects of the minimum wage introduction on regional employment with a staggered treatment 48
Table B.1. Results for the Goodman-Bacon decomposition of the TWFE results with a staggered treatment 49
Figure A.1. Wage gap ranks of labour market regions in 2014 and 2018 38
Figure A.2. Outcome evolution over time by treatment status 39
Figure A.3. Effect of the minimum wage on employment with a longer pre-treatment period 40
Figure A.4. Effect of the minimum wage on employment with staggered treatment adoption and different estimators using a bite measure for 2018 that is only updated... 41
Figure A.5. Effect of the minimum wage on employment with staggered treatment adoption without observations that switch from treatment to control group in 2019 42
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