A Wage Floor Forces Employers To Pay Better

Source: Oren M. Levin-Waldman, January 22, 2015

…If wages are supposed to rise with productivity, then why haven’t they? By all accounts the economy is improving. In December 2014, total nonfarm payroll employment rose by 252,000, and the unemployment rate dropped to 5.6 percent, which is the lowest it has been since the end of the Great Recession in 2009. At the same time, since the end of the Great Recession, productivity has been increasing, but those productivity gains have not been shared with the workers….