Minimum wage impacts on older workers: longitudinal estimates from Canada

Abstract

We use the longitudinal nature of the master file of the Survey of Labour and Income Dynamics in Canada for the period 1993-99 to estimate the employment impacts for older workers of the large number (24) of minimum wage increases that have occurred across the different provincial jurisdictions over that period Perhaps somewhat surprisingly, the minimum wage increases have positive impacts on the employment of older workers compared with the negative impacts that are commonly estimated for youths in Canada. The results are robust across various comparison groups and measures of the minimum wage increases. Reasons for this unusual finding are discussed.