Raising the minimum wage is the wrong way to deal with low pay

Professors Kevin Murphy and Robert Topel write in the Financial Times that there are better ways to deal with low pay than by raising the minimum wage. "No one wants to see workers' pay cheques shrink. Far better if employment prospects and living standards improve across the board. But the fruit of productivity growth must be cultivated; they cannot be conjured. Policies that lift wages at the cost of causing higher unemployment will be more likely to do harm than good," they write.

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