Fraser Institute report argues most minimum wage earners arent low income

Fraser Institute report argues most minimum wage earners arent low income

first_imgCALGARY (660 NEWS) – As Alberta prepares to boost the minimum wage to $15 an hour on Monday, October 1, a Fraser Institute study is criticizing the move. The report argues 92 per cent of minimum wage earners in the province do not live in low income households. Senior Policy Analyst Steve Lafleur said the province needs to target more specific anti-poverty measures, instead of putting these blanket policies in place.“You’ll create winners and losers by doing this, so, there will be some people who instead of making $13.60 an hour will make $15 and that’s great for them. The challenge is there are some people who might not get hired at all, because an employer might not be able to pay the extra little bit,” he said. Lafleur said there are likely some people not getting enough help, and others who are that don’t need it as much. The Fraser Institute based its 92 per cent figure off Statistics Canada’s low-income cut-offs: anyone making below these amounts of money is considered to dedicate larger shares of income to food, clothing and housing than the average family. In 2016, in a place with the population of Calgary, a family of four would have to live off less than $39,092 a year to fall under the cut-off. The Alberta government based the hike on the idea of a living wage: an estimate of what workers need to earn to cover the actual costs of living in a specific community.Some organizations say it still falls short and should actually be $18 an hour, or more. In Ontario, Premier Doug Ford has pressed pause on a planned minimum wage hike to $15 an hour and plans to hold more consultations.last_img

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