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To the question: Canada and Australia share many social and economic characteristics, but they have quite different shares of low-paid workers. Which of the two countries has the higher proportion of low-paid workers? A. Australia or B. Canada.
The correct answer is B: While Canada and Australia share many social and economic characteristics, low-paid workers are much more common in Canada (24.4% compared with 11.4% in Australia).
Low-paid workers are defined as the proportion of full-year, full-time workers earning less than two-thirds of a country's median.
Canada is more similar to the U.S. The two countries have the highest proportions of low-paid workers among 12 industrialized nations, with nearly 1 in 4 workers earning less than two-thirds of median annual earnings.
While low-paid work can be seen as advantageous since it provides needed work experience for youth and ensures that the economy has maximum flexibility, it can also present equity challenges if, for example, many low-paid workers are the sole earners in a family.
Chart - Canada and Australia share many characteristics, but low-paid workers are much less common in Australia
1. Results are based on full-time workers who earned at least the federal minimum wage multiplied by 52 weeks.
Source: Luxembourg Income Study, Waves V and VI.
Table - Canada and Australia share many characteristics, but low-paid workers are much less common in Australia
