Do Tips Increase Workers' Income?

• 成果类型: Article
• 署名作者: Shy, Oz
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Boston
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2014.1976
• 发表日期: 2015
• 页码: 2041-2051
• 关键词: tipping; hourly wage; tip-inclusive hourly income; tipping as a social norm

摘要

This paper constructs a model of service providers who compete in service and labor markets simultaneously to analyze the effects of tipping on hourly wages and total tip-inclusive hourly worker compensation. An increase in the tipping rate reduces hourly wages. Total worker compensation increases at different rates depending on the market structure, market coverage, and employment level, with the exception of price-taking (competitive) service providers, where the tip-inclusive hourly income declines with the tipping rate. The paper develops an index of effective tipping that measures the net percentage change in total hourly worker compensation associated with each tipping rate.