Minimum wages and the gender wage gap

Abstract

Estimates are made of the effect of minimum wages on the size and composition of the gender wage gap in Canada in 1986. It is found that minimum wages close the wage gap substantially for young workers and less so for adults. The reduction in the gap is most attributable to the adverse employment effects of minimum wages. The results also indicate that most of the reduction in the gap is realized through a fall in the discriminatory component.