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I think most of that effect in the example was achieved by the minimum wage increase. The wage subsidy then ends up as a gift to the employers. Big employers i

by runako 10y ago

I think most of that effect in the example was achieved by the minimum wage increase. The wage subsidy then ends up as a gift to the employers. Big employers in the US already do this to some extent, by paying unsurvivable wages with the knowledge that their employees will make up the difference through state-sponsored transfer payments. It seems that an across-the-board wage subsidy would simply extend this practice further up the income spectrum and increase margins for employers across the board.

simplify 10y ago
But isn't the argument against min wage increases that it would decrease jobs, since employers wouldn't be able to hire? Or, that robots will be cheaper than a higher minimum wage? That's why I suggest both of these ideas together might work. After all, you don't have to subsidize all jobs; perhaps only subsidize the lower-income jobs, while letting the market handle the higher-paying ones (like it is now).