Journal of Labor Research

, 26:533 | Cite as

How minimum wages affect schooling-employment outcomes in Canada, 1993–1999

  • Michele Campolieti
  • Tony Fang
  • Morley Gunderson


Based on longitudinal data from the Master File of the Survey of Labour and Income Dynamics (SLID) for Canada for 1993-1999, we provide multinomial logit estimates of the effect of minimum wages on the probability of being in one of four schooling-employment states as well as transitions across the states. We find that minimum wage increases led to large and statistically significant reductions in the employment of teenagers but had no net effect on their school enrollment or on the individual transition probabilities. We also find no substantial substitution of students for nonstudents or students leaving school to queue for the higher minimum wage jobs.


  1. Baker, Michael. “Minimum Wages and Human Capital Investments of Young Workers: Work Related Training and School Enrollment.” University of Toronto, manuscript (December 2003).Google Scholar
  2. —, Dwayne Benjamin, and Shuchita Stanger. “The Highs and Lows of the Minimum Wage Effect: A Time-Series Cross-Section Study of the Canadian Law.” Journal of Labor Economics 17 (April 1999): 318–50.CrossRefGoogle Scholar
  3. Brown, Charles. “Minimum Wages, Employment and the Distribution of lncom’e.” In Orley Ashenfelter and David Card, eds. Handbook of Labor Economics, Vol. 3. Amsterdam: Elsevier, 1999, pp. 2101–66.Google Scholar
  4. Burkhauser, Richard, Kenneth Couch, and David Wittenburg. “A Reassessment of the New Economics of the Minimum Wage Literature Using Monthly Data from the CPS.” Journal of Labor Economics 18 (October 2000): 653–80.CrossRefGoogle Scholar
  5. Campolieti, Michele, Tony Fang, and Morley Gunderson. “Minimum Wage Impacts on Youth Employment Transitions.” Canadian Journal of Economics 38 (February 2005): 81–104.CrossRefGoogle Scholar
  6. Card, David. “Do Minimum Wages Reduce Employment? A Case Study of California, 1987-89.” Industrial and Labor Relations Review 46 (October 1992): 38–54.CrossRefGoogle Scholar
  7. Chaplin, Duncan, Mark Turner, and Andreas Pape. “Minimum Wages and School Enrollment of Teenagers: A Look at the 1990’s.” Economics of Education Review 22 (February 2003): 11–21.CrossRefGoogle Scholar
  8. Currie, Janet and Bruce Fallick. “The Minimum Wage and the Employment of Youth.” Journal of Human Resources 31 (Spring 1996): 404–28.CrossRefGoogle Scholar
  9. Dickson, Vaughan and Tony Myatt. “The Determinants of Minimum Wages in Canada.” Journal of Labor Research 23 (Spring 2002): 57–66.CrossRefGoogle Scholar
  10. Ehrenberg, Ronald G. and Alan J. Marcus. “Minimum Wage Legislation and the Educational Outcomes of Youths.” Research in Labor Economics 3 (1980): 61–93.Google Scholar
  11. —. “Minimum Wages and Teenagers’ Enrollment-Employment Outcomes: A Multinomial Logit Model.” Journal of Human Resources 17 (Winter 1982): 39–58.CrossRefGoogle Scholar
  12. Katz, Lawrence and Alan B. Krueger. “The Effects of the New Minimum Wage in a Low-Wage Labor Market.” Proceedings of the Forty-Third Annual Meeting. Madison, WI: Industrial Relations Research Association, 1990, pp. 254–65.Google Scholar
  13. Landon, Stuart. “High School Enrollment, Minimum Wages and Education Spending.” Canadian Public Policy 23 (June 1997): 141–59.CrossRefGoogle Scholar
  14. Matilla, J. Peter. “The Impact of Minimum Wages on Teenage Schooling and on the Part-Time/Full-Time Employment of Youths.” In Samuel Rottenberg, ed. The Economics of Minimum Wages. Washington, DC: American Enterprise Institute, 1981, pp. 61–87.Google Scholar
  15. Neumark, David and William Wascher. “Minimum Wage Effects on School and Work Transitions of Teenagers.” American Economic Review 85 (May 1995a): 244–49.Google Scholar
  16. —. “Minimum Wage Effects on Employment and School Enrollment.” Journal of Business and Economic Statistics 13 (April 1995b): 199–206.CrossRefGoogle Scholar
  17. —. “The Effects of Minimum Wages on Teenage Employment and Enrollment: Evidence From Matched CPS Surveys.” Research in Labor Economics 15 (1996): 25–63.Google Scholar
  18. —. “Minimum Wages and Skill Acquisition: Another Look at Schooling Effects.” Economics of Education Review 22 (February 2003): 1–10.CrossRefGoogle Scholar
  19. Yuen, Terrence. “The Effect of Minimum Wages on Youth Employment in Canada: A Panel Study.” Journal of Human Resources 38 (Summer 2003): 647–72.CrossRefGoogle Scholar

Copyright information

© Springer 2005

Authors and Affiliations

  • Michele Campolieti
    • 1
  • Tony Fang
    • 1
  • Morley Gunderson
    • 1
  1. 1.University of TorontoCANADA

Personalised recommendations