The economics of tips

Tipping is large and growing, but we know little about its consequences for workers and firms. We link point-of-sale and payroll records at 20,000 U.S. firms, which lets us observe tips from customer payment to worker earnings. We find that tips are a nearly constant share of revenue, which means hourly pay moves with revenue. […] The post The economics of tips appeared first on Marginal REVOLUTION .

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