Essay On Minimum Wage In Canada

This article focuses on the effects of a new minimum wage in Toronto, Canada. The Ontario government is planning to increase the minimum wage from $11.40 to $15 by 2019. A minimum wage is a level of income set by the government, which is the lowest amount an employer can pay an employee. A minimum wage is typically introduced to protect the employees of an economy by setting a wage that could support a minimum standard of living. A minimum wage will increase the average income of a country, and this increases the welfare in a society. There are two main opinions on the effects that this minimum wage has, and both are mentioned in the article. The theoretical effect would be in an increase in unemployment, however, it could help the economy grow in the long run and do not affect unemployment.

Diagram for Real Wage Unemployment

This diagram illustrates what

The primary way would be through government intervention. With an increase in minimum wage comes an increase in average wage rates in a country which would increase tax revenue for the government. This new increase in revenue for the government gives them the opportunity to allocate that money to relieve unemployment. The most significant way they could do this is through an increase in investments. The Ontario government could increase investment in new infrastructure or public goods for the country. These new establishments create new job opportunities, as more labor is needed to make these new establishments. Another way the government can intervene to create more jobs is to invest in teaching under-skilled workers. When the government can provide workers who lack the skills needed to keep their jobs with more ways to learn those skills required, they become more useful and needed in the job market, making them a less likely target for getting