Since the 1970s a gulf has opened between the pay of low-paid workers and the pay of the middle class. No longer able to earn a decent wage in respectable work, many have left the labor force, and the job attachment of those remaining has weakened. For Edmund Phelps, this is a failure of political economy whose widespread effects are undermining the free-enterprise system. His solution is a graduated schedule of tax subsidies to enterprises for every low-wage worker they employ. As firms hire more of these workers, the labor market would tighten, driving up their pay levels as well as their employment.
- ISBN10 0674026942
- ISBN13 9780674026940
- Publish Date 1 September 2007 (first published 21 April 1997)
- Publish Status Active
- Publish Country US
- Imprint Harvard University Press
- Edition 2nd New edition
- Format Paperback
- Pages 208
- Language English