The minimum wage and tipped employees
Article Abstract:
Using data from the Census of Retail Trade, I estimate that allowing restaurants to use servers' tipped income to satisfy minimum wage requirements would create at least 360,000 new high-paying jobs and increase total income for tipped workers by at least 8 percent. Conversely, if the minimum wage were increased 10 percent, tipped workers would experience a 4 percent decrease in employment and a 6 percent reduction in hours worked, and all servers (tipped and non-tipped) would experience a 3 to 5 percent decrease in total income because the tipped jobs lost paid more than the minimum wage. By not allowing employers to use all of a worker's tipped income to meet the minimum wage, state and federal minimum wage laws inhibit the creation of hundreds of thousands of new jobs paying well above the minimum wage. (Reprinted by permission of the publisher.)
Publication Name: Journal of Labor Research
Subject: Human resources and labor relations
ISSN: 0195-3613
Year: 1993
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Minimum wage effects by gender
Article Abstract:
Recent criticisms have led some to dismiss time-series analyses in the debate over the minimum wage. We investigate previous time-series studies showing that raising the minimum wage has a smaller impact on females than males. We reanalyze the data in light of recent developments in time-series methods and find that the minimum wage has a similar significant negative impact on both males and females. We conclude that, following a 10 percent increase in the minimum wage, both male and female employment drops from between 2 and 4 percent over a two-year period. This employment decrease slowly erodes as economic growth and inflation cause the minimum wage to fall below the market-clearing wage. (Reprinted by permission of the publisher.)
Publication Name: Journal of Labor Research
Subject: Human resources and labor relations
ISSN: 0195-3613
Year: 1998
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Nontransferable rents and an unrecognized social cost of minimum wage laws
Article Abstract:
This paper identifies an additional social cost of minimum wage laws. The nontransferable sunk investments made in competing to obtain minimum wage jobs produce a social cost since individuals will remain in those positions as long as they obtain a positive return on this investment. This will be true even when more efficient providers of the service exist. The higher the minimum wage is, the greater the level of sunk nontransferable investments and, therefore, the greater the potential inefficient allocation of labor. (Reprinted by permission of the publisher.)
Publication Name: Journal of Labor Research
Subject: Human resources and labor relations
ISSN: 0195-3613
Year: 1990
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