(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.
A 22 percent increase
in the German minimum wage:
nothing crazy!
(with Lars Chittka & Thorsten Schank)
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.
Labor Demand on a Tight Leash
(with Martin Popp)
ILR Review, online first
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.
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, forthcoming 2026
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.