%0 Report
        %A Demir, Gökay
        %T Labor Market Frictions and Spillover Effects from Publicly Announced Sectoral Minimum Wages
        %D 2024
        %8 2024 Dec
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 17510
        %U https://www.iza.org/publications/dp17510
        %X This paper analyzes the horizontal spillover effects of Germany's first sectoral minimum wage. Using a difference-in-differences estimation, I examine the impact of the public announcement and introduction of the minimum wage on sub-minimum wage workers in related jobs outside the minimum wage sector, defined using employment flows. I find an increase in wages and job-to-job transitions for sub-minimum wage workers in related jobs. The spillover effects are driven by workers who reallocate to better-paying establishments, have low labor market experience, and are more closely connected to the minimum wage sector by having former coworkers in that sector.
        %K spillover
%K outside option
%K labor market frictions
%K minimum wages