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Wage Earnings in Canada - Research Paper Example

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Wage Earnings in Canada Name: Tutor: Course: Institution: Date: Wage Earnings in Canada There has been a decline of the real wages for workers in Canada with high school or lower education over the last thirty year, whereby among males and associates of the less skilled worker are entered Canadian labor force during the mid-1990s…
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Wage Earnings in Canada
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Nevertheless, the paper will discuss issues related to wages earnings in Canada. There was legislation as a form of government intervention in the labor market, whereby in Canada the minimum wage laws focused on women, who were in certain types of employment. The scope of the legislation was later spread to cater for the workers and men. In fact, by 1960, numerous workers had been covered with the laws of minimum wages (Fisher & Hostland, 2002). During that time, women and children were the prime focus of the legislation since they were subjects of exploitation by employers due to their vulnerability.

In addition, the legislation was focused on imposing the minimum standards conditions of employment in order to introduce a health-working environment or the workers. The minimum wage legislation had a key objective that concerning guaranteeing the workers a decent and fair wage in all sectors, and this legislation has other intended and unintended impact on the labor market. There were unfavorable effects on employment due to principles of minimum wage legislation; hence, it was justified only on the grounds of offering incentives for leaving income maintenance programs in the form of welfare.

Moreover, in the case where monetary returns to work are high, there are incentives of engagement in the labor market were opposed through an income maintenance programs. Moreover, this is considered to be saving to taxpayers, and it was preferred by transfer receipts, since workers prefer to work if the wages are sufficient. There has been a lower real life time earnings in the resent worker compared to the previous workers, whereby the tenure are not higher compared to those of preceding cohorts.

Therefore, the patterns are related to effect of approximately 35percent of the Canadian workforce has workers are experiencing stagnation or reduction of wages (Baker & Stanger, 2008). Consequently, there has been a decline of society tolerance, due to the problems experienced by low skilled workers, and this is transmitted through political economy effects. Canadian workers, despite the job tenure has median real hourly earnings with an overall decline in the real median wage that was 12percent and for the new entrants, the median real hourly wage plummeted in the recession experienced during 1980s.

There was a recovery through an economic boom during the late 1980s, though this was succeeded by another recession in early 1990s. Median hourly earnings were less than 26percent in 1997 compared with 1981, due to the increase of the wages entrants. Hourly wage did not change much though it increased by 2007, whereby there was a 15percent below the value in 1981. There has been a similar pattern of wages for a worker in a period of five years, due to the entrants and a decline with a smaller magnitude.

Median income of fulltime worker in Canada, during 2008 experienced an increase of $53, from $41,348 in 1980 and $41,401 in 2005, while entire economy labor yield during the same period was 37.4 percent (Larson, 2012). There were issue that were identified in the same year, which include; inequality in earnings, reducing terms of trade of labor measurement issues and a reduction in the labor share. Currently, the minimum wage earners various Canadian provinces has been rising over five percent and Labor Relations and Workplace Safety Minister Don Morgan made has recently made an announcement of a rise in

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