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Minimum Wage Impacts on Older Workers: Longitudinal Estimates from Canada

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  • Tony Fang
  • Morley Gunderson

Abstract

We use the longitudinal nature of the master file of the Survey of Labour and Income Dynamics in Canada for the period 1993-99 to estimate the employment impacts for older workers of the large number (24) of minimum wage increases that have occurred across the different provincial jurisdictions over that period. Perhaps somewhat surprisingly, the minimum wage increases have positive impacts on the employment of older workers compared with the negative impacts that are commonly estimated for youths in Canada. The results are robust across various comparison groups and measures of the minimum wage increases. Reasons for this unusual finding are discussed. Copyright (c) Blackwell Publishing Ltd/London School of Economics 2009.

Suggested Citation

  • Tony Fang & Morley Gunderson, 2009. "Minimum Wage Impacts on Older Workers: Longitudinal Estimates from Canada," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 371-387, June.
  • Handle: RePEc:bla:brjirl:v:47:y:2009:i:2:p:371-387
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    References listed on IDEAS

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    1. James Long, 1999. "Updated estimates of the wage mobility of minimum wage workers," Journal of Labor Research, Springer, vol. 20(4), pages 493-503, December.
    2. Terence Yuen, 2003. "The Effect of Minimum Wages on Youth Employment in Canada: A Panel Study," Journal of Human Resources, University of Wisconsin Press, vol. 38(3).
    3. Michele Campolieti & Tony Fang & Morley Gunderson, 2005. "Minimum wage impacts on youth employment transitions, 1993-1999," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 81-104, February.
    4. John Kennan, 1995. "The Elusive Effects of Minimum Wages," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1950-1965, December.
    5. Janet Currie & Bruce C. Fallick, 1996. "The Minimum Wage and the Employment of Youth Evidence from the NLSY," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 404-428.
    6. Linneman, Peter, 1982. "The Economic Impacts of Minimum Wage Laws: A New Look at an Old Question," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 443-469, June.
    7. Zavodny, Madeline, 2000. "The effect of the minimum wage on employment and hours," Labour Economics, Elsevier, vol. 7(6), pages 729-750, November.
    8. Baker, Michael & Benjamin, Dwayne & Stanger, Shuchita, 1999. "The Highs and Lows of the Minimum Wage Effect: A Time-Series Cross-Section Study of the Canadian Law," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 318-350, April.
    9. David Metcalf, 2004. "The impact of the national minimum wage on the pay distribution, employment and training," Economic Journal, Royal Economic Society, vol. 114(494), pages 84-86, March.
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    Cited by:

    1. Kadir Atalay & Woo-Yung Kim & Stephen Whelan, 2014. "The Decline of the Self-Employment Rate in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 47(4), pages 472-489, December.
    2. Thomas Turner & Michelle O’Sullivan, 2013. "Economic Crisis and the Restructuring of Wage Setting Mechanisms for Vulnerable Workers in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 44(2), pages 197-219.

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