Tips allow restaurants to pay sewers lower wages. As more sewers are hired, each serves fewer meals and earns less in tips. As a result, restaurants must pay a higher wage. This gives them monopsony power over wages. Over some range, a higher minimum wage should increase employment. Empirically, we found the full ''reverse C'' monopsony pattern of employment for restaurants, with employment first going up and then down as the minimum wage is increased.
机构:
Univ Michigan, Gerald R Ford Sch Publ Policy, Ann Arbor, MI 48109 USA
Univ Michigan, Stephen M Ross Sch Business, Ann Arbor, MI 48109 USAUniv Maryland Baltimore Cty, Dept Econ, Baltimore, MD 21250 USA
机构:
Univ Maryland Baltimore Cty, Dept Econ, Baltimore, MD 21228 USAUniv Michigan, Ross Sch Business, Ann Arbor, MI 48109 USA
Gindling, T. H.
Terrell, Katherine
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机构:
Univ Michigan, Ross Sch Business, Ann Arbor, MI 48109 USA
Univ Michigan, Ford Sch Publ Policy, Ann Arbor, MI 48109 USAUniv Michigan, Ross Sch Business, Ann Arbor, MI 48109 USA