David Neumark

The Employment Policies Institute (EPI) released a new study conducted by University of California-Irvine economists, which examines how increasing the tipped minimum wage affects earnings gaps for restaurant workers. The study finds tipped wage hikes have no impact on reducing earnings gaps between white male workers and their female and minority counterparts. … “The data shows that raising tipped minimum wages does not impact earnings shortfalls of minorities or women relative to white men,” said David Neumark, professor of economics at the University of California-Irvine. “Tip credit elimination is an ineffective solution to solve a very real problem of lower pay for minorities and women.”

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