Document type
Working paperPublication date
Publication license
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/201705
Gendered Effects of the Minimum Wage
Journal Title
Director/Tutor
Journal ISSN
Volume Title
Related resource
Abstract
Women are more likely to work in jobs with low hours than men. Low-hour jobs are associated with lower hourly wages and are more likely impacted by minimum wages that set a floor on hourly wages. We document that the first German minimum wage significantly increased women's transition towards jobs with higher weekly hours. We construct and estimate an equilibrium search model with demographic and firm productivity heterogeneity. The model replicates observed gender gaps in employment, hours and wage and the positive relationship between hours and hourly wages. We implement the minimum wage in our model with a penalty to address non-compliance. Based on our model, the minimum wage primarily reduces the gender income gap through the gender wage gap. At its 2022 level, the German minimum wage reduces the gender employment and hours gap due to an upward reallocation effect, resulting in women's increased participation in higher-hour jobs with lower separation rates. The upward reallocation effect is the strongest for women with children and varies by marital state and spousal income. While the minimum wage only modestly discourages firms from posting jobs, it shifts job offers toward full-time positions.
Subject (English)
Citation
Collections
Citation
DI NOLA, Alessandro, WANG, Haomin and HAYWOOD, Luke. Gendered Effects of the Minimum Wage. UB Economics – Working Papers. 2023 E23/450. [consulted: 8 of August of 2026]. Available at: https://hdl.handle.net/2445/201705