Making sense of a $15 minimum wage in Alberta
Economic Development Finance GovernmentSummary
Maclean’s article discusses the effects of introducing a $15 minimum wage in Alberta, who benefits from it, and if it’s the best policy tool available. Through research, Maclean's found that a $15 minimum wage is not significantly different from the current minimum-to-medium wage ratios in other Canadian provinces, and will affect 11% of Alberta’s workforce. Moreover, increasing the minimum wage would generally have a modest effect on employment. Maclean’s concludes that an increase to $15 is neither extreme nor unreasonable. As the intent of this increase is to provide higher incomes to lower-income individuals and households, the minimum wage is only one policy tool at the government's disposal. A well-designed Earned Income Tax Credit may achieve the goal of increasing the minimum wage. Ultimately, other tools should be examined in relation to increasing the minimum wage.