This study uses the Canadian Labour Force Survey (LFS) data from July 2017 to June 2018 to examine the effect of Ontario's minimum wage hike from $11.60/hour to $14.00/hour on January 1st, 2018 on the employment of young workers in the food and services industry six months before and after the policy change. Difference-in-differences regression with robust standard errors was used to estimate its effect on full-time employment.
The treatment is the provincial minimum wage increase, with the treatment group being workers in Ontario, and the control group being workers in Quebec. A comparison of household summary statistics between various regions and parallel trends test were used to examine the validity of the control group.
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