Labour Studies Index

Updated: 2019-04-26

Minimum Wage Effects on Permanent Versus Temporary Minimum Wage Employment

Document type Article
Author Campolieti, Michele
Author Gunderson, Morley
Author Lee, Byron
Journal Contemporary Economic Policy
Volume 32
Date 2014
ISSN 1074-3529
Pages 578-591
URL http://or.nsfc.gov.cn/bitstream/00001903-5/360067/1/1000007293456.pdf

Abstract

We estimate the effect of minimum wages on employment using the Master Files of the Canadian Labour Force Survey over the recent period 1997–2008. Particular attention is paid to the differences between permanent and temporary minimum wage workers—an important distinction not made in the existing literature. Our estimates for permanent and temporary minimum wage workers combined are at the lower end of estimates based on Canadian studies estimated over earlier time periods, suggesting that the adverse employment effects are declining over time for reasons discussed. Importantly, the adverse employment effects are substantially larger for permanent compared to temporary minimum wage workers; in fact they fall almost exclusively on permanent minimum wage workers.