Would a Maximum Wage Work?

A maximum wage, also often called a wage ceiling, is a legal limit on how much income an individual can earn. It is a prescribed limitation which can be used to affect change in an economic structure, but its effects are unrelated to those of minimum wage laws used currently by some states to enforce minimum earnings.

What would happen if we had a maximum wage?

The effects of a maximum wage

“A maximum wage would send a message that there's more to life than chasing after ever greater amounts of money,” Pizzigati said. “Less inequality, less concentrated wealth, less power among a small elite would be good for our democracy.”

What is the purpose of a maximum wage?

A maximum wage means that for specified industries, jobs, wages cannot exceed a certain level. They may be used to regulate labour markets where workers have excess monopoly power or in an unusual circumstance – such as a period of war. They are rarely used.