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


  • Michael T. Shannon
  • Charles M. Beach


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.

Suggested Citation

  • Michael T. Shannon & Charles M. Beach, 1995. "Distributional Employment Effects of Ontario Minimum-Wage Proposals: A Microdata Approach," Canadian Public Policy, University of Toronto Press, vol. 21(3), pages 284-303, September.
  • Handle: RePEc:cpp:issued:v:21:y:1995:i:3:p:284-303

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    References listed on IDEAS

    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.
    2. Clark, Kim B & Freeman, Richard B, 1980. "How Elastic is the Demand for Labor?," The Review of Economics and Statistics, MIT Press, vol. 62(4), pages 509-520, November.
    3. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June.
    4. Robert Swidinsky, 1980. "Minimum Wages and Teenage Unemployment," Canadian Journal of Economics, Canadian Economics Association, vol. 13(1), pages 158-171, February.
    5. Ashenfelter, Orley & Smith, Robert S, 1979. "Compliance with the Minimum Wage Law," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 333-350, April.
    6. Hamermesh, Daniel S, 1995. "Labour Demand and the," Economic Journal, Royal Economic Society, vol. 105(430), pages 620-634, May.
    7. Grenier, Gilles & Séguin, Marc, 1991. "L’incidence du salaire minimum sur le marché du travail des adolescents au Canada : une reconsidération des résultats empiriques," L'Actualité Economique, Société Canadienne de Science Economique, vol. 67(2), pages 123-143, juin.
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    Cited by:

    1. 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.
    2. 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.
    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. 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.
    5. 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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