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First to $15: Alberta's Minimum Wage Policy on Employment by Wages, Ages, and Places

Author

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  • Sebastian Fossati

    (University of Alberta, Department of Economics)

  • Joseph Marchand

    (University of Alberta, Department of Economics)

Abstract

Most minimum wage studies are identified on small, plentiful, mostly expected wage changes, spread out over time. A recent set of changes have instead been large, quick, and unexpected, following the “Fight for $15” movement. Alberta is the first North American province, state, or territory to have this $15 minimum wage, with an unexpectedly large increase (47%) occurring over a short time horizon (3 years). The employment effects of this policy are estimated using a synthetic control approach on Labour Force Survey data. Similar to the existing literature, workers moved up the wage distribution, increment by increment, but with a higher distributional reach. Employment losses occurred at similar elasticities, but with large level changes, mostly among younger workers. Newer to the literature, regional employment losses were found in four of the five non-urban economic regions, but not in Alberta’s two main cities, showing the significance and nuance of regional heterogeneity.

Suggested Citation

  • Sebastian Fossati & Joseph Marchand, 2020. "First to $15: Alberta's Minimum Wage Policy on Employment by Wages, Ages, and Places," Working Papers 2020-15, University of Alberta, Department of Economics.
    • Handle: RePEc:ris:albaec:2020_015
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    File URL: https://sites.ualberta.ca/~econwps/2020/wp2020-15.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    employment; Fight for $15; geography; minimum wage; synthetic control;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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