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Effects of Minimum Wages on Employment Dynamics and Prices in the Restaurant Sector: Canada, 1983–2016

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  • Michele Campolieti

Abstract

I estimate the effects of the minimum wage on employment growth and prices in the restaurant industry, using Canadian data from 1983–2000 and 2001–2016. I use a specification that considers lagged effects of the minimum wage as well as longer differences in the data. I find that there is no statistically significant effect on employment growth during 1983–2000, but I find some evidence of pass-through effects of the minimum wage on prices. For 2001–2016, I find a statistically significant and negative effect on employment growth but less evidence of pass-through effects on prices in the short run. However, I find more evidence of pass-through effects on prices when I consider longer adjustment periods based on a specification using longer differences in the data.

Suggested Citation

  • Michele Campolieti, 2018. "Effects of Minimum Wages on Employment Dynamics and Prices in the Restaurant Sector: Canada, 1983–2016," Canadian Public Policy, University of Toronto Press, vol. 44(4), pages 317-341, December.
    • Handle: RePEc:cpp:issued:v:44:y:2018:i:4:p:317-341
    DOI: 10.3138/cpp.2018-016
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    Cited by:

    1. Young Cheol Jung & Adian McFarlane & Anupam Das, 2021. "The effect of minimum wages on consumption in Canada," The Economic and Labour Relations Review, , vol. 32(1), pages 65-89, March.

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