Thinking about Minimum Wage Increases in Alberta : Theoretically, Empirically, and Regionally

Summary: The province of Alberta has recently committed to a $15 minimum wage by 2018, from an initial rate of $10.20 in 2014. The following thoughts offer a way to more broadly think about minimum wage increases in Alberta. In doing so, I answer three proposed questions regarding the relative magnitude and time horizon of these increases, the general theoretical framework and empirical evidence of minimum wages, and he cyclical boom and bust of the regional economy that makes its labor markets unique. In the end, I argue that the pairing of labor demand stimulus with increases to the minimum wage is the most balanced way forward for Alberta, and this can best be achieved by timing future increases with rising energy prices.