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

Author

Listed:
  • Fossati, Sebastian

    (University of Alberta, Department of Economics)

  • Marchand, Joseph

    (University of Alberta, Department of Economics)

Abstract

Alberta is the first North American state or province with a $15 minimum wage, with an unexpectedly large increase (47%) over a short time span (3 years). The employment effects of this policy are estimated using a synthetic control approach on Labour Force Survey data. Three empirical results are documented. First, employers complied with the minimum wage increases, increment by increment, with workers moving up the wage distribution, bin by bin. Second, employment losses were found among young workers, but not among prime-age and older. Third, employment losses were found outside of Alberta's two main cities, but not within them.

Suggested Citation

  • Fossati, Sebastian & Marchand, Joseph, 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; 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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