TIPPED WORKERS, MINIMUM WAGE WORKERS, AND POVERTY 1 Introduction Minimum wage tip credits allow employers to pay workers a guaranteed hourly wage that is less than the statutory minimum wage as long as tips bring the worker up to the minimum wage; if tips leave the employee short of the minimum wage, employers have to make up the difference. [...] The table displays the regular minimum wage prevailing in the state (the higher of the state or federal minimum wage), the prevailing tipped minimum wage, and how these compare to the federal policy. [...] First, we compare distribution of family income-to-needs ratios among tipped workers earning less than the statutory minimum wage to the distribution among other low-wage workers.2 Second, we compare the potential redistributive effects of eliminating tip credit in the federal minimum wage to a broad increase in the federal minimum wage that raises the wage bill by the same amount but leave the ti. [...] The histograms for wages are shown in Figure 1A – in the top panel with more detail, with a maximum wage of $15, and in the bottom panel with less detail, with a maximum wage of $50.6 In both cases, we can see the spike for tipped minimum wage workers at the federal tipped minimum wage (recall that some states where the federal minimum wage binds have a higher tipped minimum wage), and we can see. [...] Figure 4A: Wage Distributions of Tipped Restaurant Workers and Other Workers Earning Less Than or Equal to the Federal Minimum Wage Wage Comparison TIPPED WORKERS, MINIMUM WAGE WORKERS, AND POVERTY 15 Figure 4B: Family Income-to-Needs Distributions of Tipped Restaurant Workers and Other Workers Earning Less Than or Equal to the Federal Minimum Wage Income-to-Needs Distribution Income-to-Needs Dist.
- Pages
- 26
- Published in
- United States of America
