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Addressing unintended consequences of minimum wage policies

The implementation of Germany's minimum wage policy led to reduced wage inequality but also resulted in fewer working hours and job exits for 'minijob' workers. The effects of the policy became more pronounced after the 2022 wage hike, highlighting the importance of policy details in shaping outcomes. This situation presents a challenge in balancing the goals of reducing wage inequality with minimizing negative impacts on certain worker groups.

Social Sciences, Psychology, Clinical Psychology