TY  - RPRT
        AU  - Link, Sebastian
        TI  - The Price and Employment Response of Firms to the Introduction of Minimum Wages
        PY  - 2022/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15701
        UR  - https://www.iza.org/index.php/publications/dp15701
        AB  - This paper studies the price and employment response of firms to the introduction of a nation-wide minimum wage in Germany. Widely throughout the economy, affected firms responded by rapidly and frequently increasing prices without cutting employment. 
These decisions are strongly interrelated: Firms that increased prices relatively more often also showed a less negative employment response. The relative importance of both adjustment margins is associated with product market competition and the specific economic situation firms face during the treatment period. Hence, understanding the role of price pass-through appears to be key for explaining employment effects of minimum wages. 

        KW  - employment
KW  - price pass-through
KW  - minimum wage
KW  - interrelation of firms' choices
        ER  -