Minimum Wage Effects on Permanent Versus Temporary Minimum Wage Employment

14 Pages Posted: 9 May 2014

See all articles by Michele Campolieti

Michele Campolieti

University of Toronto at Scarborough - Division of Management

Morley Gunderson

University of Toronto - Department of Economics

Byron Lee

Renmin University of China

Date Written: July 2014

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.

JEL Classification: J30

Suggested Citation

Campolieti, Michele (Mike) and Gunderson, Morley and Lee, Byron, Minimum Wage Effects on Permanent Versus Temporary Minimum Wage Employment (July 2014). Contemporary Economic Policy, Vol. 32, Issue 3, pp. 578-591, 2014, Available at SSRN: https://ssrn.com/abstract=2434878 or http://dx.doi.org/10.1111/coep.12036

Michele (Mike) Campolieti (Contact Author)

University of Toronto at Scarborough - Division of Management ( email )

1265 Military Trial
Scarborough, Ontario M1C 1A4
Canada

Morley Gunderson

University of Toronto - Department of Economics ( email )

150 St. George Street
Toronto, Ontario M5S 3G7
Canada
416-978-5398 (Phone)
416-978-5696 (Fax)

Byron Lee

Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing 100872
China

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