Would a $20 minimum wage in Quebec actually be a 'big blow' to the economy?
A proposal by Québec Solidaire to raise the minimum wage to $20 an hour has sparked debate between political leaders and economic researchers. While the CAQ warns of economic damage and wage-price spirals, some researchers argue that historical data does not support these fears.
Why it matters
Minimum wage policy is a central economic issue that directly impacts cost of living and business operational costs.
But Coalition Avenir Québec (CAQ) Leader Christine Fréchette contended that hiking the rate too quickly would have a detrimental ripple effect.
"It would be a big blow, because in fact, when you modify the minimum wage, it's certain that the entire wage scale is affected by it," Fréchette told Radio-Canada host Anne-Marie Dussault on Wednesday evening, adding that a jump of that scale would "hurt the economy too much."
But does economic data actually support that claim?
Eve-Lyne Couturier, a researcher with the Institut de recherche et d'informations socioéconomiques (IRIS), said the concerns raised by the CAQ leader are unfounded.
“Every year you have business representatives come out and say, ‘this is too much,’” she said in an interview.
“What we see in reality is that the dramatic effects do not happen.”
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