Behind the hype over Aetna’s minimum wage boost — Barbara Dyer

MIT Sloan Senior Lecturer and Visiting Scientist Barbara Dyer

MIT Sloan Senior Lecturer and Visiting Scientist Barbara Dyer

From Fortune

Last week, Aetna, Inc., one of the largest healthcare insurers in America, made news when it announced it would boost its minimum wage base to $16 an hour for its lowest-earning employees. Aetna  AET 0.35%  also pledged to cover more of its employee’s health costs. In a Wall Street Journal interview, CEO Mark Bertolini said the company hopes to reduce its $120 million annual turnover costs and will monitor how this investment plays out.

While a firm’s decision to increase pay for lower-wage workers should certainly be applauded, it also begs the question: Why is the decision to pay workers $16 per hour breaking news?

My answer: because of the message it sends to investors and shareholders.

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Connectivity climbs post crisis — Robert Merton

From Financial Times

Interdependency between banks, insurers and countries through financial instruments was a factor blamed for the financial crisis. Now, academics are trying to measure it. Bob Merton, professor of finance at MIT Sloan, explains to John Authers that credit seems even more interconnected now.

Robert C. Merton is the School of Management Distinguished Professor of Finance at the MIT Sloan School of Management.

Watch the video at the Financial Times.