@TechReport{iza:izadps:dp13633,
            	author={Gregory, Terry and Zierahn-Weilage, Ulrich},
            	title={When the Minimum Wage Really Bites Hard: Impact on Top Earners and Skill Supply},
            	year={2020},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={13633},
            	url={https://www.iza.org/publications/dp13633},
	abstract={This paper provides new insights into how wages and employment adjust to a minimum wage policy along different wage and skill groups. For this, we exploit a quasi-experimental setting in the 1990s, where a German industry introduced a minimum wage at an extraordinary high level during an economic downturn with falling revenues. We find positive wage spillovers to medium-skilled workers with wages just above the minimum wage. More striking, we also find negative wage effects for high-skilled workers situated higher up in the wage distribution, followed by reduced returns to skills and skill supply in the industry. We explain these adjustments, both theoretically and empirically, with a substitution-scale model that predicts negative spillovers whenever labour demand shifts from low- to more skilled workers (substitution effect) are overcompensated by an overall decline in labour demand (scale effect).},
	keywords={scale effect;unconditional quantile regression;returns to skills;spillover effects;wage restraints;wage effects;minimum wages;substitution effect;skill supply},
            }