This paper sheds new light on the effects of the minimum wage on employment from a two-sided theoretical perspective, in which firms' job offer and workers' job acceptance decisions are disentangled. Minimum wages reduce job offer incentives and increase job acceptance incentives. We show that...

This paper sheds new light on the effects of the minimum wage on employment from a two-sided theoretical perspective, in which firms' job offer and workers' job acceptance decisions are disentangled. Minimum wages reduce job offer incentives and increase job acceptance incentives. We show that...

Labour market developments in Germany can be separated into two major shocks: German reunification in the early 1990s, and the Hartz reforms in the early 2000s. In this paper it is argued that these two shocks divide the German wage bargaining system into the old labour market system, which is...