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Distributional Employment Effects of Ontario Minimum-Wage Proposals. A Microdata Approach

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  • Shannon, M.T.
  • Beach, C.M.

Abstract

This paper examines the distribution of potential employment losses from the proposed increase in the Ontario minimum wage to 60 percent of the average Ontario wage. The analysis is based on microdata for 1989. It is found that the majority of workers affected are women, but the average cost gap of those affected is greater for men. Those most affected are young and part-time workers, with high-school education or less, and in the Retail, Accommodation and Food industries. Those affected come disproportionately from families with low earnings. The policy is estimated to reduce the number of jobs by 73-92 thousand or 1.2 to 1.5 percent.
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Suggested Citation

  • Shannon, M.T. & Beach, C.M., 1993. "Distributional Employment Effects of Ontario Minimum-Wage Proposals. A Microdata Approach," Papers 1993-9, Queen's at Kingston - Sch. of Indus. Relat. Papers in Industrial Relations.
    • Handle: RePEc:fth:qkirce:1993-9
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    References listed on IDEAS

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    1. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
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    Cited by:

    1. Richard Chaykowski & George Slotsve, 2008. "The Extent of Economic Vulnerability in the Canadian Labour Market and Federal Jurisdiction: Is There a Role for Labour Standards?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 88(1), pages 75-96, August.
    2. David A. Green, 2014. "What Is a Minimum Wage For? Empirical Results and Theories of Justice," Canadian Public Policy, University of Toronto Press, vol. 40(4), pages 293-314, December.
    3. Richard V. Burkhauser & Joseph J. Sabia, 2007. "The Effectiveness Of Minimum‐Wage Increases In Reducing Poverty: Past, Present, And Future," Contemporary Economic Policy, Western Economic Association International, vol. 25(2), pages 262-281, April.
    4. Josip Lesica, 2018. "Lobbying For Minimum Wages," Economic Inquiry, Western Economic Association International, vol. 56(4), pages 2027-2057, October.
    5. Sen, Anindya & Rybczynski, Kathleen & Van De Waal, Corey, 2011. "Teen employment, poverty, and the minimum wage: Evidence from Canada," Labour Economics, Elsevier, vol. 18(1), pages 36-47, January.
    6. Stephen Birch, 1999. "The 39 steps: the mystery of health inequalities in the UK," Health Economics, John Wiley & Sons, Ltd., vol. 8(4), pages 301-308, June.
    7. Michele Campolieti & Morley Gunderson & Byron Lee, 2012. "The (Non) Impact of Minimum Wages on Poverty: Regression and Simulation Evidence for Canada," Journal of Labor Research, Springer, vol. 33(3), pages 287-302, September.
    8. Mark D. Turner & Berna Demiralp, 2000. "Effects of Higher Minimum Wages on Teen Employment and School Enrollment," JCPR Working Papers 198, Northwestern University/University of Chicago Joint Center for Poverty Research.

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    Keywords

    LABOUR MARKET; WAGES;

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