The unexpected effects of the German minimum wage on income equality in firms

When Germany introduced its federal statutory minimum wage of 8.50 euro in 2015, it marked a major shift in labour policy. Fast forward to 2025, and the minimum wage is now 12.82 euro. Given annual increases in the minimum wage, there are ongoing debates about how minimum wages affect income inequality. It turns out the answer depends heavily on the financial strength of the firms.

Publication Details

Journal
Institute for Employment Research (IAB)
Published
2025-03-25
DOI
https://doi.org/10.48720/iab.foo.20250325.02
Primary Topic
Economic and Business Studies
Type
article
Field-Weighted Citation Impact
0.00
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article

The unexpected effects of the German minimum wage on income equality in firms

Institute for Employment Research (IAB)
Economic and Business Studies
article

The unexpected effects of the German minimum wage on income equality in firms

article en

Abstract

When Germany introduced its federal statutory minimum wage of 8.50 euro in 2015, it marked a major shift in labour policy. Fast forward to 2025, and the minimum wage is now 12.82 euro. Given annual increases in the minimum wage, there are ongoing debates about how minimum wages affect income inequality. It turns out the answer depends heavily on the financial strength of the firms.

Institute for Employment Research (IAB)
Decent work and economic growth
Openalex Percentile: Top 52%
Economic and Business Studies
DOIOpen Access PDFOpenAlex
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The unexpected effects of the German minimum wage on income equality in firms · Institute for Employment Research (IAB) (2025) | TGRS Research Map | TGRS