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less and less incentive to push for higher wages

What's most people's biggest expenditure out of wages? Housing. Which has been increasing in price, both rental and purchase.

Besides, higher wages are their own incentive. Nobody says "As a footballer/company director/etc I feel that a million pounds a week is enough, I'm not interested in a pay rise."

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For most employed people, more pay == more work. And if their kids are fed and happy, if they get to do the things they love on the weekends, if their house is big enough for a shindig with the whole family, if they're comfortable, then the value of more work might not be apparent to them.

Eh? More pay usually means more per hour/month, not an increase in hours worked.

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