Dear John,

What prevents low-income workers from climbing the income ladder?

A few Fraser Institute study out today finds that the costs of government regulation, including labour regulations such as licencing and accreditation, represent a real barrier for low-income Canadians.

For example, government regulation of many industries requires workers to purchase occupational licences or train to acquire credentials before they can work. This takes time and money, which low-income people may not possess, creating a barrier that prevents them from more fully participating and advancing in the labour market.

General employment regulations across industries slow wage growth for low-income workers as well – occupational licencing tends to hurt income growth among the poor more than among higher-income workers.

Learn more – including how these regulations also affect entrepreneurs – at the full study here.

Stay safe,

Niels Veldhuis
President