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Women's Economic Inequality

The Wage Gap

In this section:

Woman at cashierWomen and Minimum Wage

Part of the reason that the wage gap is still as big as it is in Canada is because women make up 2/3 of minimum wage earners. In Canada, minimum wage earnings do not provide people with a fair income. In fact, minimum wage earnings fall well below the poverty-line.

For example, Manitoba's minimum wage of $6.75/hour falls well below both LICO - the Low-income Cut Off (a formula determined by Statistics Canada that often acts as Canada's unofficial poverty line) and ALL - the Acceptable Living Level (a poverty-line determined by anti-poverty organizations in Winnipeg).

  Low-Income Cut Off (urban) *Minimum Wage Earnings Acceptable Living Level (pre-tax) in Winnipeg
Family of 1 $17,409 $14,040 $14,409
Family of 2
(1 adult, 1 child)
$21,760 $14,040 n/a
Family of 3
(1 adult, 2 children)  
$27,063 $14,040 $30,697
Family of 4
(2 adults, 2 children)
$32,238 $28,080 $38,550
Family of 4
(1 adult, 3 children)
$32, 238 $14,040 $38,550

*40 hours/week, 52 weeks/year, no allowance for sick days, holidays, or periodic lay-offs.

Source: Stats Canada Low Income Cut Offs. January 1998. Compiled by Lissa Donner with updates by Jennifer deGroot. Acceptable Living Level prepared by the Social Planning Council of Winnipeg, March 2001.

What this meansÄ

  • According to LICO 1998 levels, a single person earning minimum wage falls 19% below the poverty line. According to the ALL, a single person earning minimum wage falls 3% below the poverty line.
  • According to LICO 1998 levels, a family of 3 (1 adult, 2 children) in which the adult works full-time, full-year and earns minimum wage, falls 48% below the poverty-line. According to ALL, the same family falls 54% below the poverty-line.
  • According to the LICO 1998 levels, a family of 4 (2 adults, 2 children) in which both adults work full-time, full-year, earning minimum wage, falls 13% below the poverty-line. According to ALL, the same family falls 17% below the poverty-line.

Just Income Coalition
A new coalition has just been formed in Manitoba calling on the government to raise minimum wage rates to a just income. For information and to sign their petition visit the Just Income Coalition.

Minimum Wage Board
The minimum wage board exists to decide minimum wage rates and individuals and organizations are invited to make submissions to the board. To see past submissions to the board visit: UNPAC Spring 1999 and Canadian Centre for Policy Alternatives Spring 2001.

  • Global Poverty Quiz

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