Minimum Wage and Living Wage: Examining Poverty in British Columbia

This essay examines the debate surrounding minimum wage versus living wage in British Columbia, exploring the economic impacts of both. It begins by defining minimum wage as the legal minimum hourly rate and living wage as the amount needed for basic necessities. The study presents the argument that increasing the minimum wage alone may not eliminate poverty, citing evidence on the number of industrial workers earning below a living wage and the lack of proper shelter. The essay counters with the claim that a substantial portion of minimum wage earners are not primary income providers, and therefore, a wage increase might not be the most effective solution. It analyzes various claims and counterclaims, providing evidence from sources like CBC News, and academic research. The analysis then suggests alternative policies such as work-based subsidies, similar to the Canada Workers Benefit, to support low-income workers and concludes by recommending further research and surveys to address the gap between minimum and living wages effectively. The essay's goal is to provide a comprehensive overview of the issue to help policymakers make informed decisions.

Running Head: MINIMUM WAGE AND LIVING WAGE
MINIMUM WAGE AND LIVING WAGE
Name of the Student
Name of the University
Author Note

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Introduction:
In the country of British Columbia the minimum wage can be considered as the least
amount paid to the workers on the basis of an hour, by the employer of a company. The
minimum wage in British Columbia, is stipulated by the law imposed by the federal government
of the country. In other words, wage given by an employer may vary depending on the economy,
total demand for a product, competition in the labor market. On the other hand, the term ‘living
wage ‘implies the,a particular wage level, which will allow a person to make provision for
enough food, shelter, clothing and other necessities. In other words, it can be said that, living
wage is formed on the basis of the theoretical ideas on the economy of a country in concern, here
it is BritishColumbia.The purpose of this study is to delve deep into the problems generated due
to the substantial gaps in the minimum wage as well as living wage in the country of British
Columbia.
Thesis statement:
The argument represented in the thesis statement is that, a rise in the least or minimum
wage will not able to eliminate poverty in the British Columbia.
Rebuttal Paragraph:
According to Fletcher, the minimum or least wage should be enhanced to the living wage
standards across all province and territories. If the minimum least wage is not enhanced to the
living wage standard, then the industrial workers, in British Columbia, will not be able to make
provision for the basic amenities of life. Their financial condition will be lower. Industrial

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workers in British Columbia will suffer from acute poverty along with the number of people who
live below the poverty level.
Evidence:
A total of 50 poverty lines are estimated across the country. Most of them are industrial
workers and earn below $15.20. The amount of the minimum wage they earn is considered to be
below the living wage.Hence, most of the industrial workers are categorized as people suffering
from acute poverty. According to the evidences found from Canada's First Poverty Reduction
Strategy, nearly 50% of the industrial workers in Canada do not have proper shelter. They live in
an unhygienic condition (www.cbc.ca).
Analysis:
An in depth analysis of the living condition of the industrial workers reveal that, most of
the industrial workers, especially women workers are not able to live with dignity. This is
because they have to survive in an unhealthy work environment and undergo maltreatment
frequently. As discussed by Rani et.al., a huge section of the Canadian workers receive the
amount of wage, which is much lower as compared to the living wage and they do not only
struggle to earn the basic necessities of living, but also beg for the minimum level of dignity
human beings should receive. They have suggested that, ensuring basic needs as well as dignity
to the workers will only be possible, if their minimum wage is raised to the level of living wage.
Hence, minimum wage should be enhanced above $15.20. An increment below that level within
2021 is considered to be too slow by British Columbia Federation of labor. In the year 2017,
according to a report published by the report of the economics professor David Green of UBC,
there has been an analysis regarding the low wage issues. The analysis indicates that the probable
impact of a $15 minimum wage on job loses would be much lowered than feared. His research

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also concluded that the overall benefits of the minimum wage through a series of processes
would outweigh the costs. (Ivanova)
Own-opinion counter claim:
The increase in the minimum wage from $11.35 per hour in the year 2018 tomore than
$15.20 per hour by the year 2021 will not be effective enough to alleviate poverty from the
country of Canada.A 34% rise in the minimum wage will not ensure equality of the rights and
opportunities to live in a hygienic and healthy condition, equal medical facilities to all the
workers (Crettaz). Again, families marked as living under poverty line will not receive resilience
as well as security. On the other hand the widely nurtured misperception, a major section of people, who
earn minimum or least wage, in the British Columbia cannot be marked as poor. Most of the teen-agers
fall under this category. They cannot be considered as people struggling with poverty as they are not the
primary or the main income earners in their family. The pay of many workers, especially those who have
families and need to support them financially and are below the poverty level need their minimum wage
to be improved. The increase of the minimum wage would essentially and eventually have a positive
effect upon the economy of the nation, since if there is a possibility of earning more money, there would
be a tendency to spend more. A 2019 CNBC survey showed that almost 60 percent of the respondents
were in the favor of enhancing the federal or minimum wage at the level of $15 per hour. (www.cbc.ca ).
Evidence:
As the evidence, it can be said that, 55.7% of the earning persons who earn minimum
wage in province are teen-agers as well as young adults aging between 15 and 24 who are not the
primary wage earners in the family. Moreover, nearly 77.9% of them live with their parents or
relatives (www.cbc.ca).

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Analysis:
Most of the minimum workers, who earns minimum wage do not have to support their
families, rather they are dependent on their family and relatives. Moreover, nearly 22% of the
people who earn the minimum wage are married and have an employed spouse.According to
Ivanova, again 93.1% of the minimum wage earners cannot be considered as poor, as they are
self-employed too. Hence, it can be said that, the majority of people who earn minimum wage, in
the British Columbia cannot be marked as poor. Most of the teen-agers fall under this category.
They cannot be considered as people struggling with poverty as they are not the primary or sole
income earners in their family.The growing number of cities in the United States including San
Francisco and Los Angeles, are shifting to the minimum wage of $15. Also the states of
Washington DC, New York and California have approved the gradual increase of the wage rates
to a minimum $15 wage and this has been also considered by the other nations (Ivanova).
Claim:
The analysis of the evidences pave the ways for two different types of claims. One is
there is no need to increase the minimum wage to the living wage. This is because, all the
minimum wage earners arenot poor. Rather a huge section of the minimum wage earners do not
need any kind of hike in wages, as they are not the primary wage earners in their family. If the
minimum wage is increased to a higher level like 34% within three years, then, a part of the total
income of the country may be channelized to people who are not at all counted as people living
below the poverty level of the country.On the other hand there are opponents who believe that
the increase to the minimum wage has an impact upon the employers, and the small companies
face the burden of the increase. Thus this would result in the slow growth and decreased levels of

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employment. The increase in the wage rate say that the minimum wage has not kept up with the
inflation of the economy and that there is impoverishment of the minimum wage workers.
Hence, the people who actually live under poverty line will not be benefited. Hence, raising
theminimum wage will not be good for the socio-economic condition of the country asa whole
(Clavet et al.).
Evidence: 1
As the evidence of this claim, it can be said that, minimum wage price may induce
inflation or higher prices of good and services and cast upon negative impacts on the socio-
economic condition of the poor. (Clavet et al., 2013).
Evidence: 2
83.4% of the minimum wage earners do not live in poverty, hence, the increase in the
minimum wage will not be beneficial for all.
Analysis
Since the minimum wage earners are not the only person working in the family, who
need to financially support the family, there is no requirement to increase the minimum wage
rates for these workers.In response to a minimum wage hike, the firms and the companies do not
fire or terminate the existing minimum wage employees. Thus there is no hiring of new low
wage employees. The hiring decreases by a great percentile. This has a great level of negative
impact on the economy of the country.Higher minimum wage rates affect the employment in
general, especially in the areas of low wage employees. And on the other hand the net benefits of

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the higher minimum wage is higher where the employment is dominated by the non-tradable
sector.
Claim:
In order toassist the working poor of British Columbia, the policy makers should
introduce a work-based subsidy similar to the Canada Workers Benefit. In other words, the
subsidy should be given to the worker after considering the hazardous work he or she does along
with the worker’s family income.
Evidence: 1
As the evidence, it can be said that, the ministry of Labor’s Instruction to the Fair wage
Commission which concerned with the issues related to the determination of minimum wage.
(Crettaz, 2013).
Evidence: 2
The reports published by Fair wage Commission in favor of those, who are the primary wage
earners in their families.
Analysis:
According to Clavet, the Fair Wage Commission has been committed to develop a
process for the minimum wage, which should be regularly reviewed and increased once $15 per
hour. There must be recommendations about other wage rates under the Employment Standard

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Regulation for agricultural workers, liquor servers as well as the other workers who are below
the poverty line.The committee has drawn a minimum wage estimation at the national as well as
regional levels based on an improved formula. This has been done by keeping in consideration
the families of the minimum wage workers. According to Ministry of the Labor’s Instruction to
the Fair Wage Commission there has been issues regarding the higher minimum wage. The labor
costs increase driving an increase to the unemployment rates. The process also go up according
to the Classical economic theory. Established by the British Columbia government, the Fair
Wage Commission advices the government onto how to raise the minimum wage rates, in favor
of the workers who are below the poverty level and need to support their family.
Conclusion: `
In the conclusion, it can be said that, people who earns minimum wage should provide
the details of their family income, and a survey should also be conducted in order to find out
people who are actually affected due to the substantial difference between living wage and
minimum wages; so that a work-based subsidy can be provided to those who suffers from acute
poverty.

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Works Cited
Clavet, Nicholas-James, Jean-Yves Duclos, and Guy Lacroix. "Fighting poverty: Assessing the
effect of guaranteed minimum income proposals in Quebec." Canadian Public Policy
39.4 (2013): 491-516.
Crettaz, Eric. "A state-of-the-art review of working poverty in advanced economies: theoretical
models, measurement issues and risk groups." Journal of European Social Policy 23.4
(2013): 347-362.
Fletcher, Tom. "Most B.C. Minimum Wage Earners ‘Aren’T Poor,’ Report Says - Victoria
News". Victoria News, 2018, https://www.vicnews.com/business/most-b-c-minimum-
wage-earners-arent-poor/.
Ivanova, Iglika. "IglikaIvanova: An Increase So Small It Keeps Minimum Wage Workers In
Poverty". The Province, 2016, https://theprovince.com/opinion/iglika-ivanova-an-
increase-so-small-it-keeps-minimum-wage-workers-in-poverty.
Rani, Uma, et al. "Minimum wage coverage and compliance in developing
countries." International Labour Review 152.3-4 (2013): 381-410.
www.cbc.ca. "B.C.'S Move To Raise Minimum Wage To $15.20 By 2021 Too Slow Says B.C.
Federation Of Labour | CBC News". CBC, 2018,
https://www.cbc.ca/news/canada/british-columbia/minimum-wage-bc-1.4526320.

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