The common refrain from Conservatives is that raising a minimum wage is a job killer.
Well, a new study pokes some pretty big holes into that theory.
The Canadian Centre for Policy Alternatives — an Ottawa-based left-leaning think tank — reviewed minimum wage increases in all provinces from 1983 to 2012 and studied its affect on employment levels.
What they found was that, in 90 per cent of the cases, there was “no statistically significant relationship whatsoever between a higher minimum wage and labour market outcomes in Canada.”
"In the overwhelming majority of cases, gradual increases in the minimum wage were not generative of negative labour market outcomes in Canadian provinces," notes the report.
"Most fundamentally, employers never purchase labour as an end to its own right. Employers hire workers in order to produce a good or service that is then sold into a product market.
"The demand for labour is thus a derived demand, which depends entirely on the final demand for theRead More »from Increasing minimum wages may not lead to job losses after all, report suggests