Yes, but you end up with a stagnant income. I'd rather use a more flexible approach that isn't going to be countered with riots and greed. I just don't really see a point in upping the wages unless you are maxed out with tg and stables, as you are probably going to have to run some banks or armouries to pay for that cost. In the long term you can maintain military loses, send aid, learn science, or help fund the dragon with that extra cost. It's all preference of course.