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Minimum Wage Increases as an Anti-Poverty Policy in Ontario

Author

Listed:
  • Allison Mascella
  • Shahzia Teja
  • Brennan S. Thompson

Abstract

In this article, we consider the possibility of alleviating poverty in Ontario through minimum wage increases. Using survey data from 2004 to profile low wage earners and poor households, we find two important results. First, over 80 percent of low wage earners are not members of poor households and, second, over 75 percent of poor households do not have a member who is a low wage earner. We also present simulation results which suggest that, even without any negative employment effects, planned increases in Ontario's minimum wage will lead to virtually no reduction in the level of poverty.

Suggested Citation

  • Allison Mascella & Shahzia Teja & Brennan S. Thompson, 2009. "Minimum Wage Increases as an Anti-Poverty Policy in Ontario," Canadian Public Policy, University of Toronto Press, vol. 35(3), pages 373-379, September.
  • Handle: RePEc:cpp:issued:v:35:y:2009:i:3:p:373-379
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    File URL: http://dx.doi.org/10.3138/cpp.35.3.373
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    Cited by:

    1. 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.
    2. Brennan Thompson, 2012. "Flat rate taxes and relative poverty measurement," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(3), pages 543-551, March.
    3. Marchand, J. & Smeeding, T., 2016. "Poverty and Aging," Handbook of the Economics of Population Aging, Elsevier.
      • Marchand, Joseph & Smeeding, Timothy, 2016. "Poverty and Aging," Working Papers 2016-11, University of Alberta, Department of Economics, revised 20 Nov 2016.
    4. repec:cdh:commen:491 is not listed on IDEAS
    5. Joseph Marchand, 2017. "Thinking about Minimum Wage Increases in Alberta: Theoretically, Empirically, and Regionally," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 491, pages 1-20, September.
    6. 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.

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