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The impact of the minimum wage on job automation in Canada

Thesis

French

ID: <http://hdl.handle.net/20.500.11794/67079>

Abstract

This thesis brings together two major field of economic research in the labor market,that is, research on minimum wage and research on job automation. The objective of thisthesis is therefore to assess the impact of the minimum wage on the automation ofemployment in Canada between 1998 and 2018. The main hypothesis is that increases in theminimum wage stimulate the automation of jobs requiring few skills, by substituting newtechnologies for low-skilled workers. The analysis uses the methodology of Lordan andNeumark (2018) in order to explore this hypothesis of capital-labor substitution and to betterunderstand how minimum wage policies shape the type of employment held in Canada. Theresults show that a 10% increase in the minimum wage would reduce the share of automatedjobs held by low-skilled workers by 0,3 percentage points. The second part of this thesis alsoshows a higher probability of losing their job for low-skilled workers in automatable jobsfollowing an increase in the minimum wage. Together, these results are evidence that theminimum wage has a positive effect on the automation of employment in Canada.

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