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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.

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Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 21 (1995)
Issue (Month): 3 (September)
Pages: 284-303

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Handle: RePEc:cpp:issued:v:21:y:1995:i:3:p:284-303
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  1. 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 509-20, November.
  2. Robert Swidinsky, 1980. "Minimum Wages and Teenage Unemployment," Canadian Journal of Economics, Canadian Economics Association, vol. 13(1), pages 158-71, February.
  3. Orley Ashenfelter & Robert Smith, 1977. "Compliance with the Minimum Wage Law," Working Papers 478, Princeton University, Department of Economics, Industrial Relations Section..
  4. 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.
  5. 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.
  6. Hamermesh, Daniel S, 1995. "Labour Demand and the," Economic Journal, Royal Economic Society, vol. 105(430), pages 620-34, May.
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