How Does the Minimum Wage Affect Poverty?

How Does the Minimum Wage Affect Poverty?

Introduction

Understanding how the minimum wage level functions to affect poverty in a given society is crucial for informing policy in a number of important areas. Indeed, examining the link between poverty and the minimum wage is necessary for policy-makers working to establish sound economic policy as well as labour and social advocacy groups seeking to ensure the minimum wage is at a level sufficient to ensure workers can meet their most basic and fundamental needs. Readers should be concerned with the link between the minimum wage and levels of poverty because poverty is a particularly significant and impactful social issue. High rates of poverty can both negatively impact the economy, as well as contribute to a host of negative social issues. At the same time, there may be questions regarding the impacts to poverty associated with the minimum wage. Research which better clarifies this link is particularly important. For these reasons, investigating the link between the minimum wage and poverty is essential. This essay will provide a summary of two academic journal articles investigating the link between poverty and the minimum wage. Each summary will discuss the particular focus of researchers, the contribution of the study, the methodology employed by researchers, as well as their findings and conclusions. Finally, the essay will conclude with a brief commentary regarding the relevance of these articles to the larger topic, as well as their effectiveness in promoting learning.

Summary of First Article: “The (Non) Impact of Minimum Wages on Poverty: Regression and Simulation Evidence for Canada”

This article looks at the impact that minimum wages has had on levels of poverty in...

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...cal evidence to help ensure their efficacy. While some policies may appear politically expedient, they may fail to actually generate the positive change they are designed to. I would be interested in examining simulation-based research to examine the impact of no minimum wage. Given that it has been shown to not be an effective tool in addressing poverty, it would be interesting to learn more about potential impacts arising from its elimination, specifically the impacts arising from its elimination on poverty.

Works Cited

Campolieti, M., M. Gunderson and B. Lee. "The (Non) Impact of Minimum Wages on Poverty: Regression and Simulation Evidence for Canada." Journal of Labor Research 33.3 (2012): 287-302. Print.

Mascella, A., S. Teja and B. S. Thompson. "Minimum Wage Increases as an Anti-Poverty Policy in Ontario." Canadian Public Policy 35.3 (2009): 373-379. Print.