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ERIC Number: ED089089
Record Type: Non-Journal
Publication Date: 1973-Aug
Pages: 55
Abstractor: N/A
Reference Count: N/A
Long-Run Impact of the Thirty Cent Revision in Ontario's Minimum Wage on Five Industries.
McKenna, Ian B.
To determine the effect of a legislated increase in the minimum wage in Ontario, 219 establishments in five industries were surveyed. The industries were shoe factories; luggage, handbag, and small leather goods manufacturers; hosiery mills, children's clothing industry; and the foundation garment industry. Data were gathered at three different times: just before the increase, shortly after the increase, and one year after the increase. The increase saw an immediate reduction in the number of employees earning less than the new minimum, but over the course of a year, it was not possible to isolate the effect of the minimum wage on employment. More than half the establishments raised product prices in the year following the wage increase. Following a period of compression of the labor structure by increasing wages at the lower end, the differentials established prior to the revision were re-established. It is generally concluded that the immediate gains to the low-paid employees are eroded in the long run. The level of hourly earnings increased, but changes in employment, hours of work, systems of payment, and production techniques could not be attributed to the wage increase. (AG)
Publication Type: N/A
Education Level: N/A
Audience: N/A
Language: N/A
Sponsor: N/A
Authoring Institution: Ontario Dept. of Labour, Toronto. Research Branch.
Identifiers - Location: Canada