The article explores how the relationship between productivity and wages affects the labor market. It shows that in Finland, low-wage workers are paid more than their productivity justifies. This hurts skilled workers by lowering their wages. The study suggests that raising low wages doesn't always lead to higher overall wages. The research also suggests that workers' effort can be influenced by their pay, even when low wages are regulated. Ultimately, the study highlights the importance of understanding how wages are linked to productivity in order to create fair and efficient labor markets.