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The idea of raising the minimum wage in Canada and in some jurisdictions in the United States is a contentious topic. Proponents of a higher minimum wage tout that such increase will be an effective tool for helping those in poverty. But a recent study by the Fraser Institute found that 88% of minimum wage earners in Canada do not actually live in low-income households. In fact, nearly 60% of these earners are young adults aged 15-24, most of whom are living with their parents or other relatives. Additionally, research has found that about 70% of the benefits from a higher wage go to non-poor households in Canada.

Beyond the misperception that the majority of the benefits from an increase in the minimum wage would go to low-income earners and the most vulnerable, raising the minimum wage has been shown to lead to reductions in employment, particularly for young people and immigrants.

While constructing your essay, consider the following questions:

A) Should provincial governments increase the minimum wage?

B) What impact would such an increase have on the Canadian economy?

C) Is raising the minimum wage an effective way to provide assistance to vulnerable Canadians?

D) Is there an alternative to raising the minimum wage that targets low-income earners more precisely?

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Fraser Institute Student Essay Contest