State & Local Government Policy, Business and Technology

Tips for States and Cities Trying to Raise Workers' Wages

Governing: CEOs used to make 30 times their average employee’s salary -- now it's more than 300 times, with no sign of a significant slowdown. With income inequality near a record high and wages failing to keep up with inflation, many government leaders say it's obvious there's a problem.

The solution, however, is less clear.

Minimum-wage hikes mandated by the government are championed by progressives as a necessary part of the puzzle but decried by conservatives as harmful to private employers. Instead, conservatives tend to favor programs like the Earned Income Tax Credit (EITC) for low- to moderate-income households. There is evidence that the EITC is effective, at least in that it provides work incentives, aids families according to their need and creates better educational and health outcomes for children.

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