+++ BETA VERSION +++

General equilibrium effects of your minimum wage in Germany

Real wage Employment Welfare Labour force

Notes: Maps show simulated long-run general equilibrium effects of the German minimum wage based on the quantitative spatial model in Ahlfeldt, Roth, Seidel (2021): Optimal minimum wages [LINK]. The mapped outcome is the labour force, i.e. the total number of workers working or searching for jobs (measured at the residence). The long-run effect is simulated in a counterfactual with fully mobile residents.

How to use: To explore the general equilibrium effects, simply browse through the relative federal or regional minimum wage levels. To obtain the abolute minimum wage level, multiply the relative minimum wage in percentage terms by the mean wage per hour. In 2020, the national mean wage per hour was €19.38. You can use the minimum wage calculator to compute the relative minimum wage for a given absolute value (in €/h) and year of introduction.