The Effect of the Tipped Minimum Wage on Employees in the U.S. Restaurant Industry.

According to federal law in 2013, employers can take a credit of up to $5.12 for tips received by workers in satisfying the minimum-wage requirement of $7.25. This article uses interstate variation in laws regarding tip credits and minimum wages to identify the effects of reducing or eliminating the...

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Publicado en:Southern Economic Journal Vol. 80; no. 3; pp. 633 - 656
Autores principales: Even, William E., Macpherson, David A.
Formato: Artículo
Publicado: Wiley-Blackwell Jan2014
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: The Effect of the Tipped Minimum Wage on Employees in the U.S. Restaurant Industry.
      aug:
        au:
          Even, William E.
          Macpherson, David A.
        affil:
          Raymond E. Glos Professor of Economics, Department of Economics, Miami University, Oxford, OH 45046, USA
          E.M. Stevens Professor of Economics, Department of Economics, Trinity University, One Trinity Place, San Antonio, TX 78212, USA
      su:
        Minimum wage
        Food laws
        Wage laws
        Restaurants
        Industrial surveys
      sug:
        subj:
          Minimum wage
          Food laws
          All Other Miscellaneous Food Manufacturing
          Perishable Prepared Food Manufacturing
          Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors
          All other building equipment contractors
          Commercial and Institutional Building Construction
          Full-Service Restaurants
          Wage laws
          Restaurants
          Industrial surveys
      ab: According to federal law in 2013, employers can take a credit of up to $5.12 for tips received by workers in satisfying the minimum-wage requirement of $7.25. This article uses interstate variation in laws regarding tip credits and minimum wages to identify the effects of reducing or eliminating the tip credit on employment, hours, and earnings in the U.S. restaurant industry. Using data from the Quarterly Census of Employment and Wages and the Current Population Survey, we find that a reduction in the tip credit increases weekly earnings but reduces employment in the full-service restaurant industry and for tipped workers. The results are robust to controls for spatial heterogeneity in employment trends and are supported by a series of falsification tests.
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    language: English
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