A better solution to the minimum-wage debate
Via Crain’s Chicago Business
This fall, Illinois voters will consider a nonbinding referendum on whether to raise the state’s minimum wage to $10 an hour from its current $8.25. Chicago Mayor Rahm Emanuel has asked whether an even higher city-specific minimum wage would also be appropriate.
Both the state and the city are posing the wrong question.
Illinois policymakers and voters shouldn’t be talking about whether to raise the minimum wage — they should be talking about the best way to boost the pay of low-income employees. On this count, the evidence suggests an increase in the Earned Income Tax Credit is far superior to an increase in the base wage.
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