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In 2007, the Government of Ontario Raised the Minimum Wage

Question 27

Multiple Choice

In 2007, the government of Ontario raised the minimum wage substantially and justified it as a policy designed to help the poor. What was the evidence found in this regard?


A) It does not help the poor because there is not a lot of overlap between the poor and minimum-wage workers.
B) It does help the poor because the employment effect is strong.
C) It does help the poor because most of the poor are working at low-paid jobs.
D) It does help the poor because many of them work long hours, and thus will benefit from a higher wage.
E) The existing research is inconclusive on this issue.

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