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Of course, there remain open questions about the implementation of Amazon's new plan: Will employee benefits (like annual bonuses) be rolled back to finance the wage increase? Will some contract workers be excluded from it? We hope not, and we hope that Amazon is sincere about meaningfully improving wages for their lower wage workers. Furthermore, the law of unintended consequences being what it is, we're sure that not even Amazon will anticipate all of the effects of higher wages - one story that followed close on the heels of the announcement described brewing resentment among incumbent Amazon workers that newbies would get the same high wage as more senior employees.
Amazon recently made headlines by announcing that it would voluntarily increase its minimum hourly wage to $15. With a federal minimum wage of only $7.25, this pledge might seem like a curious decision - especially for a company as laser-focused on cost containment as Amazon. But thinking only about the costs involved in raising wages misses a key issue: pay hikes can also boost workplace productivity.
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