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The unexpected effects of the German minimum wage on income equality in firms

Year: 2025

Type: article

Abstract: When Germany introduced its federal statutory minimum wage of 8.50 euro in 2015, it marked a major shift in labour policy. Fast forward to 2025, and the minimum wage is now 12.82 euro. Given annual increases in the minimum wage, there are ongoing debates about how minimum wages affect income inequality. It turns out the answer depends heavily on the financial strength of the firms.

Source: Institute for Employment Research (IAB)

DOI: 10.48720/iab.foo.20250325.02

Authors: Gehrke, Britta, Ali Taskin, Ahmet

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

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

Open Access status: green

OpenAlex ID: W6892085394

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