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Who is Served by the Tip Credit? Effects of Minimum Wage Laws on Tipping, Employment, and Prices at Restaurants

Who is Served by the Tip Credit? Effects of Minimum Wage Laws on Tipping, Employment, and Prices at Restaurants

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The U.S. Census Bureau and the Local Employment Dynamics (LED) Partnership in collaboration with the Council for Community and Economic Research (C2ER) and the Labor Market Information (LMI) Institute, welcomes Martha Stinson as she presents, “Who is Served by the Tip Credit? Effects of Minimum Wage Laws on Tipping, Employment, and Prices at Restaurants.” Stinson presents a study of the impact of two types of minimum wages, regular and tipped credit, on the outcomes of restaurants and their workers. Specifically, whether restaurants in states with increasing minimum wages change the number or type of workers they employ, raise their prices, or go out of business more often. The study also examines whether the workers at these restaurants earn more, in both tips and regular pay, work fewer hours, or stay at their jobs longer.

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