Volume 17, Number 2 (Spring) 1982
Swidinsky, Robert, and David A. Wilton. 1982. "Minimum Wages, Wage Inflation, and the Relative Wage Structure." Journal of Human Resources 17(2):163-177.
This paper reports an analysis of the effect of changes in legislated minimum wages on negotiated wage increases, using micro data on Canadian labor con- tracts between 1966 and 1975. The analysis departs from previous studies in that it divides the sample data base into high- and low-wage sectors. The results indicate that union negotiated wage settlements reflect at least partially legislated minimum wage changes over the past contract period. However, this minimum wage effect is restricted to the low-wage sector. In addition, the sectoral results suggest that the relative wage structure should tend to narrow in the long run.
The authors are Professors of Economics at the University of Guelph and
the University of Waterloo, respectively.
* We gratefully acknowledge the helpful comments that we have received from the
two anonymous referees and the editorial staff of this Journal. We would also
like to thank our exceptionally diligent research assistants, Jane Forster and
Jenny Arnott.
© 2003 by the Board of Regents of the University of Wisconsin System
US ISSN 0022-166X