Mario Bossler

Scarce Workers, High Wages?

(with Benjamin Börschlein and Martin Popp)

We estimate the wage elasticity to an increase in labor market tightness. Although the wage-setting curve is relatively flat, wages increase by 0.7-1.1 percent when tightness doubles. However, the effect is stronger at the bottom of the wage distribution, thereby contributing to declining wage inequality. 

Works councils and hiring frictions

(with Nicole Gürtzgen and Tim Kovalenko)

Using vacancy-level data, we find that works councils are associated with longer delays before new hires start work (start lag), but not with significantly longer recruitment durations, as employers anticipate the delay and begin recruiting earlier. 

Labor Demand on a Tight Leash 

(with Martin Popp)

ILR Review

We show that labor market tightness has a significantly negative impact on firms' labor demand. When tightness doubles, firm-level employment reduces by 5 percent (see table below). As a significant contribution, we show that tightness raises hiring costs, with hiring costs averaging 16-24% of yearly wage payments. 

The Devil is in the Details:
Heterogeneous Effects of the German Minimum Wage on Working Hours and Minijobs

(with Ying Liang & Thorsten Schank) 

Journal of Public Economics

While the literature agrees on at most limited negative effects on the overall employment level, we go into detail and analyze the impact on the working hours dimension and on the subset of minijobs. 

A 22 percent increase

in the German minimum wage:

nothing crazy! 

(with Lars Chittka & Thorsten Schank)

German Economic Review,  forthcoming

We present the first empirical evidence on the 22 percent increase in the German minimum wage, implemented in 2022, raising it from €9.82 to €10.45 in July and eventually to €12 in October. Our findings reveal significant positive effects on wages, affirming the policy’s intended benefits for low-wage workers. We also identify negative effects on working hours, which do not fully compensate the wage gains.