TY - RPRT AU - Demir, Gökay TI - Labor Market Frictions and Spillover Effects from Publicly Announced Sectoral Minimum Wages PY - 2024/Dec/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 17510 UR - https://www.iza.org/publications/dp17510 AB - 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. KW - spillover KW - outside option KW - labor market frictions KW - minimum wages ER -