Work

Gendered Effects of the Minimum Wage

Year: 2026

Type: article

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.

Source: International Economic Review

DOI: 10.1111/iere.70114

Authors: Alessandro Di Nola, Luke Haywood, Haomin Wang

Institutions: Universitat de Barcelona, German Institute for Economic Research, University of Konstanz

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Gender equality, Decent work and economic growth, Reduced inequalities, No poverty

Open Access status: hybrid

Estimated APC paid: $3,570