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question: What are the factors that determine the actual minimum wage<br />
requirement? Regardless of the ubiquity involving the legislation on<br />
states, as well as well as the affiliation of the legislators, have an influence<br />
voting. An earlier contribution also involves the examination of the votes<br />
RESEARCH PAPER LITERATURE REVIEW SAMPLE<br />
Determining Factors of Minimum Wages in the Provinces of Canada<br />
During the last few years, mainly encouraged by the works of Carter and<br />
Kim (1997), different articles regarding the impact on employment of the<br />
legislation of minimum wage have surfaced. This interest on how<br />
minimum wages impact employment naturally leads to a different<br />
minimum wage, this question has further received minimum attention.<br />
One potential reason behind this is that because in the United States, the<br />
minimum wage is legislated right at the federal, instead of being in the<br />
state level of the government. Since there are occasional changes to the<br />
federal wage, most studies in the US have been limited to involving cross-<br />
sectional studies which focuses on the way the characteristics of the<br />
on the vote of the changes proposed for the federal minimum wage.<br />
(Silvester and Damon, 1972). Since the minimum wage in Canada is under<br />
the provincial, and not the federal coverage, there has been a substantial<br />
level of variation when it comes to the timing and level of changes<br />
involving the wage across the provinces, thus giving the opportunity to<br />
further explore on a relatively rich data set panel.<br />
As previously noted, studies have typically been cross sectional,<br />
examining on the variables that influenced the congressional voting<br />
towards increasing federal minimum wage. For instance, Bulb (1995)<br />
connects the levels of state wage with that of the proportions covering<br />
unionized employees, and the votes of the senators to amend the Federal<br />
Labor Standards Act of 1977 and 1989. For every year, he only found that<br />
the union variable has increased the possibility of achieving an in-favor<br />
of the congressmen for the amendment in order to potentially increase<br />
the minimum wage. By using variables coming from each of the<br />
congressional district, they have discovered bigger political contributions<br />
by larger proportions and unions involving low-income families,<br />
increasing the probability of attaining an affirmative vote.<br />
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Also, bigger campaign contributions coming from smaller businesses, as<br />
Bulb, T. (1995). Provincial and political government spending within<br />
Silvester, H., & Damon, H. (1972). The anticipated political support for the<br />
RESEARCH PAPER LITERATURE REVIEW SAMPLE<br />
well as larger proportions of the inclusion of teenage workers have<br />
reduced this probability. This study was further expanded with the<br />
analysis that involves five different cross sections, and five legislated<br />
increases for the federal minimum wage for the years 1949 to 1974. They<br />
have also discovered that relatively higher state wages, together with a<br />
percentage of the liberalism of a congressperson were always associated<br />
positively and connected with the votes, while the percentage involving<br />
the blacks within the state was related negatively. However, these factors<br />
were not proven to be significant in all of the cross sections.<br />
More recently, Bulb (1995), has further explored on the support that both<br />
the House and the Senate has provided. He discovered a number of<br />
variables that represent some small businesses, as well as low-wage<br />
earners have decreased their support for the passing of the bill. In order to<br />
expect and anticipate potential problems in the future, Bulb focused on<br />
the need to make sure that only the variables that are considered as<br />
ambiguous should be looked into, but also the factor that workers may<br />
support rationally, or oppose the increase in minimum wage, depending<br />
on whether the job loss is also expected.<br />
In contrast to the situation in the US, Canada offers better opportunities<br />
when it comes to studying variations involving minimum wages across<br />
time and jurisdictions. Therefore, it is quite surprising that the only<br />
available study examining the minimum wage determination of Canada is<br />
not as complete as expected.<br />
References<br />
Canada. Canada Administration Journal, 23(3), 544-56.<br />
Carter, H., & Kim, P. (1997). The determinants for minimum wage rates.<br />
Public Eyes, 23(1), 23-24.<br />
legislation on the improvement of minimum wage discussion. Journal of<br />
Labor, 23(3), 34-45.<br />
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