  We present the first empirical evidence on the 22 percent increase in the
German minimum wage, implemented in 2022, raising it from Euro 9.82 to 10.45 in
July and to Euro 12 in October. Leveraging the German Earnings Survey, a large
and novel data source comprising around 8 million employee-level observations
reported by employers each month, we apply a
difference-in-difference-in-differences approach to analyze the policy's impact
on hourly wages, monthly earnings, employment, and working hours. Our findings
reveal significant positive effects on wages, affirming the policy's intended
benefits for low-wage workers. Interestingly, we identify a negative effect on
working hours, mainly driven by minijobbers. The hours effect results in an
implied labor demand elasticity in terms of the employment volume of -0.17
which only partially offsets the monthly wage gains. We neither observe a
negative effect on the individual's employment retention nor the regional
employment levels.
