The effect of the minimum wage for tipped workers on firm strategy, employees and social welfare
Author
Abstract
Suggested Citation
DOI: 10.1016/j.labeco.2012.07.002
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Azar Ofer H, 2008. "Strategic Behavior and Social Norms in Tipped Service Industries," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-18, March.
- Sen, Anindya & Rybczynski, Kathleen & Van De Waal, Corey, 2011. "Teen employment, poverty, and the minimum wage: Evidence from Canada," Labour Economics, Elsevier, vol. 18(1), pages 36-47, January.
- Ofer H. Azar, 2007.
"Do people tip strategically, to improve future service? Theory and evidence,"
Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 515-527, May.
- Ofer H. Azar, 2007. "Do people tip strategically, to improve future service? Theory and evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 40(2), pages 515-527, May.
- Mincer, Jacob, 1976.
"Unemployment Effects of Minimum Wages,"
Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 87-104, August.
- Jacob Mincer, 1974. "Unemployment Effects of Minimum Wages," NBER Working Papers 0039, National Bureau of Economic Research, Inc.
- Azar, Ofer H., 2004.
"What sustains social norms and how they evolve?: The case of tipping,"
Journal of Economic Behavior & Organization, Elsevier, vol. 54(1), pages 49-64, May.
- Ofer H. Azar, 2003. "What sustains social norms and how they evolve? The case of tipping," Others 0309001, University Library of Munich, Germany.
- Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June.
- Strobl, Eric & Walsh, Frank, 2011.
"The ambiguous effect of minimum wages on hours,"
Labour Economics, Elsevier, vol. 18(2), pages 218-228, April.
- Eric Strobl & Frank Walsh, 2011. "The ambiguous effect of minimum wages on hours," Open Access publications 10197/8051, School of Economics, University College Dublin.
- Danziger, Leif, 2010.
"Endogenous monopsony and the perverse effect of the minimum wage in small firms,"
Labour Economics, Elsevier, vol. 17(1), pages 224-229, January.
- Danziger, Leif, 2009. "Endogenous Monopsony and the Perverse Effect of the Minimum Wage in Small Firms," IZA Discussion Papers 4320, Institute of Labor Economics (IZA).
- Leif Danziger, 2009. "Endogenous Monopsony and the Perverse Effect of the Minimum Wage in Small Firms," CESifo Working Paper Series 2740, CESifo.
- Lynn, Michael & Grassman, Andrea, 1990. "Restaurant tipping: an examination of three 'rational' explanations," Journal of Economic Psychology, Elsevier, vol. 11(2), pages 169-181, June.
- Matt Parrett, 2006. "An Analysis of the Determinants of Tipping Behavior: A Laboratory Experiment and Evidence from Restaurant Tipping," Southern Economic Journal, John Wiley & Sons, vol. 73(2), pages 489-514, October.
- Azar, Ofer H., 2009. "Tipping motivations and behavior in the US and Israel," MPRA Paper 20304, University Library of Munich, Germany.
- Wessels, Walter John, 1997. "Minimum Wages and Tipped Servers," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 334-349, April.
- Lynn, Michael & Zinkhan, George M & Harris, Judy, 1993. "Consumer Tipping: A Cross-Country Study," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(3), pages 478-488, December.
- Azar, Ofer H., 2004.
"The history of tipping--from sixteenth-century England to United States in the 1910s,"
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(6), pages 745-764, December.
- Ofer H. Azar, 2003. "The History of Tipping - From Sixteenth-Century England to United States in the 1910s," Economic History 0309001, University Library of Munich, Germany.
- John Anderson & Orn Bodvarsson, 2005. "Do higher tipped minimum wages boost server pay?," Applied Economics Letters, Taylor & Francis Journals, vol. 12(7), pages 391-393.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Maggie R. Jones, 2016. "Measuring the Effects of the Tipped Minimum Wage Using W-2 Data," CARRA Working Papers 2016-03, Center for Economic Studies, U.S. Census Bureau.
- Sacha Kapoor, 2020. "Inefficient incentives and nonprice allocations: Experimental evidence from big‐box restaurants," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(2), pages 401-419, April.
- Ofer H. Azar, 2020. "The Economics of Tipping," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 215-236, Spring.
- Oz Shy, 2015. "Do Tips Increase Workers' Income?," Management Science, INFORMS, vol. 61(9), pages 2041-2051, September.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Azar, Ofer H., 2011. "Business strategy and the social norm of tipping," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 515-525, June.
- Ofer Azar, 2009.
"Incentives and service quality in the restaurant industry: the tipping-service puzzle,"
Applied Economics, Taylor & Francis Journals, vol. 41(15), pages 1917-1927.
- Azar, Ofer H., 2005. "Incentives and Service Quality in the Restaurant Industry: The Tipping – Service Puzzle," MPRA Paper 4457, University Library of Munich, Germany, revised 2006.
- Ofer H. Azar & Yossi Tobol, 2008.
"Tipping as a Strategic Investment in Service Quality: An Optimal‐Control Analysis of Repeated Interactions in the Service Industry,"
Southern Economic Journal, John Wiley & Sons, vol. 75(1), pages 246-260, July.
- Azar, Ofer H. & Tobol, Yossi, 2006. "Tipping as a strategic investment in service quality: An optimal-control analysis of repeated interactions in the service industry," MPRA Paper 4393, University Library of Munich, Germany, revised 2007.
- Azar, Ofer H., 2006. "Tipping, firm strategy, and industrial organization," MPRA Paper 4485, University Library of Munich, Germany.
- Lynn, Michael, 2015. "Service gratuities and tipping: A motivational framework," Journal of Economic Psychology, Elsevier, vol. 46(C), pages 74-88.
- Osman Ahmed El-Said & Hossam Said Shehata, 2017. "Tipping Motives in Egyptian Restaurants: Customers’ View," Tourism Research Institute, Journal of Tourism Research, vol. 16(1), pages 176-198, June.
- Azar, Ofer H., 2009. "Tipping motivations and behavior in the US and Israel," MPRA Paper 20304, University Library of Munich, Germany.
- Azar, Ofer H., 2007.
"Why pay extra? Tipping and the importance of social norms and feelings in economic theory,"
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 250-265, April.
- Ofer H. Azar, 2005. "Why pay extra? Tipping and the importance of social norms and feelings in economic theory," Microeconomics 0503005, University Library of Munich, Germany.
- Azar, Ofer H. & Yosef, Shira & Bar-Eli, Michael, 2015. "Restaurant tipping in a field experiment: How do customers tip when they receive too much change?," Journal of Economic Psychology, Elsevier, vol. 50(C), pages 13-21.
- Muravyev, Alexander & Oshchepkov, Aleksey, 2013. "Minimum Wages, Unemployment and Informality: Evidence from Panel Data on Russian Regions," IZA Discussion Papers 7878, Institute of Labor Economics (IZA).
- Hoover, Hanna, 2022. "Nudges as norms: Evidence from the NYC taxi cab industry," Journal of Economic Psychology, Elsevier, vol. 92(C).
- Azar, Ofer H., 2004.
"The history of tipping--from sixteenth-century England to United States in the 1910s,"
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(6), pages 745-764, December.
- Ofer H. Azar, 2003. "The History of Tipping - From Sixteenth-Century England to United States in the 1910s," Economic History 0309001, University Library of Munich, Germany.
- Ofer H. Azar, 2020. "The Economics of Tipping," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 215-236, Spring.
- Alexander Muravyev & Aleksey Oshchepkov, 2013. "Minimum wages and labor market outcomes: evidence from the emerging economy of Russia," HSE Working papers WP BRP 29/EC/2013, National Research University Higher School of Economics.
- Amir B. Ferreira Neto & Adam Nowak & Amanda Ross, 2017. "Do tourists tip more than local consumers? Evidence of taxi rides in New York City," Working Papers 17-14, Department of Economics, West Virginia University.
- Ofer H. Azar, 2007.
"Do people tip strategically, to improve future service? Theory and evidence,"
Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 515-527, May.
- Ofer H. Azar, 2007. "Do people tip strategically, to improve future service? Theory and evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 40(2), pages 515-527, May.
- Lynn, Michael, 2015. "Explanations of service gratuities and tipping: Evidence from individual differences in tipping motivations and tendencies," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 55(C), pages 65-71.
- Na Young Lee & Stephanie M. Noble & Dipayan Biswas, 2018. "Hey big spender! A golden (color) atmospheric effect on tipping behavior," Journal of the Academy of Marketing Science, Springer, vol. 46(2), pages 317-337, March.
- Chih, Yao-Yu, 2016. "Social network structure and government provision crowding-out on voluntary contributions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 63(C), pages 83-90.
- Ofer Azar, 2005.
"The Social Norm of Tipping: Does it Improve Social Welfare?,"
Journal of Economics, Springer, vol. 85(2), pages 141-173, August.
- Ofer H. Azar, 2005. "The Social Norm of Tipping: Does it Improve Social Welfare?," Others 0503013, University Library of Munich, Germany.
More about this item
Keywords
Minimum wage; Tipping; The restaurant industry; Business strategy; Tipped workers;All these keywords.
JEL classification:
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
- M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:labeco:v:19:y:2012:i:5:p:748-755. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/labeco .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.