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The Impact of Minimum Wages on Well-Being: Evidence from a Quasi-experiment in Germany

  • Filiz GülalEmail author
  • Adam Ayaita
Review Article

Abstract

We analyze well-being effects of minimum wages, using the introduction of the minimum wage in Germany as a quasi-experiment. Based on representative data, a difference-in-differences design compares the development of life, job, and pay satisfaction between employees who are affected by the reform according to their pre-intervention wages and those who have marginally higher wages at outset. We find significantly positive effects on all considered dimensions of well-being. The results hold for at least 1 year after the reform, are more pronounced in East Germany, and hold if those who are not employed anymore after the reform are included.

Keywords

Minimum wage Natural experiments Well-being Satisfaction 

JEL Classification

I31 J28 J30 J31 J38 J60 

Notes

Supplementary material

10902_2019_189_MOESM1_ESM.docx (2.3 mb)
Supplementary material 1 (DOCX 2325 kb)

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© Springer Nature B.V. 2019

Authors and Affiliations

  1. 1.Paderborn UniversityPaderbornGermany
  2. 2.RWTH Aachen UniversityAachenGermany

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