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Abstract
Do tipped servers in states with higher tipped minimum wages earn more, ceteris paribus, than servers elsewhere? Using 1999 data on waitpersons and bartenders, little evidence is found of a premium to servers in states with more generous minimum wages.
Notes
Currently, the tipped minimum wage ranges from $1.59 in Kansas to $7.16 in Washington.
The only published research we are aware of is by Wessels (Citation1993, Citation1997), who used Census of Retail Trade data to estimate the effects of tipped minimum wages on the volume of server employment.
The PROBIT model predicted 89 state tip credit adoptions, while in actuality there were 86.
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