Minimum wages and mental health: Evidence from Canada

International evidence on the effect of minimum wages on mental health has been mixed. Estimation has used different types of variation in the minimum wage. In some countries such as the UK, the minimum wage is set nationally. In the United States, it is largely set subnationally. The resulting acro...

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Main Authors: Yihong Bai, Michael R. Veall
Format: Article
Language:English
Published: Elsevier 2023-12-01
Series:SSM - Mental Health
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666560323000026
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author Yihong Bai
Michael R. Veall
author_facet Yihong Bai
Michael R. Veall
author_sort Yihong Bai
collection DOAJ
description International evidence on the effect of minimum wages on mental health has been mixed. Estimation has used different types of variation in the minimum wage. In some countries such as the UK, the minimum wage is set nationally. In the United States, it is largely set subnationally. The resulting across state and time variation has recently been used to estimate that minimum wage increases have a positive effect on mental health. We exploit similar and substantial subnational level variation for Canada, using a longitudinal health survey panel available from 1994 to 2011. Using difference-in-difference and triple difference methods with individual fixed effects, we find that minimum wage increases are associated with modest reductions in distress and depression symptoms, largely for males.
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spelling doaj.art-70ff9afca834472da3df9746f3fa4cdb2023-06-22T05:05:30ZengElsevierSSM - Mental Health2666-56032023-12-013100187Minimum wages and mental health: Evidence from CanadaYihong Bai0Michael R. Veall1Department of Economics, McMaster University, 1280 Main St W, Hamilton, Ontario, L8S 4M4, CanadaCorresponding author.; Department of Economics, McMaster University, 1280 Main St W, Hamilton, Ontario, L8S 4M4, CanadaInternational evidence on the effect of minimum wages on mental health has been mixed. Estimation has used different types of variation in the minimum wage. In some countries such as the UK, the minimum wage is set nationally. In the United States, it is largely set subnationally. The resulting across state and time variation has recently been used to estimate that minimum wage increases have a positive effect on mental health. We exploit similar and substantial subnational level variation for Canada, using a longitudinal health survey panel available from 1994 to 2011. Using difference-in-difference and triple difference methods with individual fixed effects, we find that minimum wage increases are associated with modest reductions in distress and depression symptoms, largely for males.http://www.sciencedirect.com/science/article/pii/S2666560323000026Subnational variation of minimum wages and mental healthDistressDepression
spellingShingle Yihong Bai
Michael R. Veall
Minimum wages and mental health: Evidence from Canada
SSM - Mental Health
Subnational variation of minimum wages and mental health
Distress
Depression
title Minimum wages and mental health: Evidence from Canada
title_full Minimum wages and mental health: Evidence from Canada
title_fullStr Minimum wages and mental health: Evidence from Canada
title_full_unstemmed Minimum wages and mental health: Evidence from Canada
title_short Minimum wages and mental health: Evidence from Canada
title_sort minimum wages and mental health evidence from canada
topic Subnational variation of minimum wages and mental health
Distress
Depression
url http://www.sciencedirect.com/science/article/pii/S2666560323000026
work_keys_str_mv AT yihongbai minimumwagesandmentalhealthevidencefromcanada
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