@techreport{431b87d14d0749779105defe023c9143,
title = "When the Minimum Wage Really Bites Hard: Impact on Top Earners and Skill Supply",
abstract = "We investigate minimum wage spillovers by exploiting the first-time introduction of a minimum wage within a quasi-experiment in a context with an extraordinary large bite: the German roofing industry. We find positive wage spillovers for medium-skilled workers with wages just above the minimum wage, but negative effects for high-skilled top earners in East Germany, where the bite was particularly pronounced. There, the minimum wage lowered both returns to skills and skill supply. We propose a theoretical model according to which negative spillovers occur whenever a negative scale effect dominates a positive substitution effect and provide empirical support for our theory.",
keywords = "minimum wages, wage effects, spillover effects, wage restraints, returns to skills, unconditional quantile regression, scale effect, substitution effect, skill supply",
author = "Terry Gregory and Ulrich Zierahn",
year = "2020",
month = sep,
day = "24",
doi = "10.2139/ssrn.3697884",
language = "English",
series = "SSRN Electronic Journal",
publisher = "SSRN",
type = "WorkingPaper",
institution = "SSRN",
}