>Enforcing a higher minimum wage just put people out of jobs...

Maybe increasing the amount taxi drivers are paid would drive up the cost of taxis and thus drive down demand for taxis. This seems reasonable to me. We're defining a minimum amount somebody's time is worth, which means the cost of things that use peoples time go up.

The root "problem" taxi drivers solve still exists - people still need to get around, but taxis aren't the only way to solve that problem. Train and bus services could be expanded or improved.

The other thing to consider is that the extra money the taxi drivers earn will most likely provide other economic opportunities.