NCPA - National Center for Policy Analysis

Should Tipping Be Abolished?

March 31, 2016

The practice of tipping restaurant servers and bartenders is under attack. Some academics and pundits want to abolish tipping and replace the practice with a higher minimum hourly wage or a so-called "living wage," generally described as the wage rate required to lift the living standards of a household or family with only one worker above the poverty line. Yet tipping opponents do not seem to appreciate the economics of tipping. Tipping has economic advantages for everyone concerned: restaurant owners, their customers, servers and other workers.


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