The problem is that taxi drivers don't really get paid wages at all. Most of them are "independent contractors" that rent the taxi/medallion from someone for the duration of their shift. If they don't make enough to cover that cost, they lose money. To me that is the most messed up part of this entire system -- that the wealth created by the enforced scarcity of taxi medallions accrues to a small owning class that shoulders none of the risk.