The Oct. 1 increase to Alberta’s minimum wage brought cheers from some and jeers from others.
The increase to $15 an hour from $13.60 is billed by the provincial government as a move towards a fair wage for every Albertan.
The Fraser Institute calls it a flawed anti-poverty policy.
Proponents on both sides used studies to make their point.
It’s unfortunate that a key piece of information was missing on both sides of the coin that would have given a better picture of the increase’s impact on our communities.
None of the studies trotted out in recent weeks looked at the geographical distribution of minimum wage earners or where their jobs are located.
A per capita incidence rate, especially in small towns, would have been useful information to project impacts on the economy.
Anecdotally, it is small businesses that tend to pay minimum wage -- not just because many require non-skilled workers, but because their margins are so low.
And per capita, where would you think more small businesses operate? I’m guessing, small towns and villages across the province.
You can’t throw a stick without hitting a small business that pays minimum wage in most small towns. Olds is no different.
According to the provincial government’s studies, about 254,000 people, or about 11 per cent of employees in Alberta, earned less than $15 an hour before the increase.
The government’s Alberta Low Wage Profile states that 63 per cent of low-wage earners are female, 37 per cent are parents, 53 per cent work full-time and 76 per cent have permanent jobs.
The Fraser Institute says if its intent was actually to reduce poverty, the government missed the mark as, according to its studies, 92 per cent of workers earning minimum wage in Alberta did not live in a low-income family.
That’s as close as we come to where minimum wage workers live and zero on where those jobs are located.
Based on anecdotal evidence, small rural communities per capita may have a lot more people with more money in their pocket but also a lot more businesses struggling to put it there, compared to their larger urban counterparts.
It’s something that begs further study.
Lea Smaldon is Mountain View Publishing's managing editor.
