Effects of the statutory minimum wage on wages and working hours - MLK-027

The Minimum Wage Act (MiLoG) introduced a general statutory minimum wage in Germany on January 1, 2015, which was increased to EUR 12.41 per hour on January 1, 2024. In this study, we estimate the effects of the statutory minimum wage on hourly and monthly wages, various wage components, working hours and the volume of work. A major focus of the project is on analyzing spillover effects, i.e., the impact of the minimum wage on individuals who are not directly affected by an increase. The evaluation analyzes the increase of the minimum wage from €9.82 to €12 in 2022, using data from the Federal Statistical Office's Earnings Survey (VE) for April 2022 and April 2023 as well as earlier waves of the Structure of Earnings Survey (VSE). The adjustments of the minimum wage in 2022 to 10.45 and 12 euros cannot be analyzed separately due to the availability of the data.