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Justin Sullivan/Getty Images 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. In fact, the company has been accused of being too self-serving in its minimum wage hike - concerns arose nearly immediately after its announcement that the increase might be financed by cuts to bonuses and benefits that would leave workers no better off than before. The concept of efficiency wages is an old idea, dating back at least to Henry Ford's introduction of the "five dollar day" in 1914, at a time when the daily wage at manufacturing plants near his Highland Park factory was $2.30. Ford himself called it his finest cost-cutting move, because of the boost to productivity that came as a result. There's good reason to think that Jeff Bezos's $15 per hour will be as successful as Ford's $5 a day. Finally, some of Amazon's high wage PR may be directed at government officials. With a president who has taken to bashing the company and its leader, it can't hurt to look like the good guy once in a while. And if governments at the state and city-level make good on their pledges to raise the minimum wage locally, Amazon will be paying $15 an hour sometime soon anyway - so why not get out in front of the issue now? 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. And, to be clear, if increasing wages turns out to be a profitable decision that does not take away from our support for Amazon's decision. We applaud cases in which companies do right by their employees, the environment, and society in general. And if Amazon ends up making more money as a result, that's all to the greater good. high quality imitation bagscheap name brand purses

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