Mostly Economics Podcast #6 - The real cost of tipping in America with Sylvia Allegretto
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Mostly Economics Podcast #6 - The real cost of tipping in America with Sylvia Allegretto
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About this listen
In this episode, we are talking about the tipped minimum wage with Dr. Sylvia Allegretto, CEPR Senior Economist. unpacks the little-known but widespread practice of paying tipped workers a sub-minimum wage—just $2.13 an hour at the federal level since 1991. Dean and Sylvia discuss how this "tip credit" system effectively shifts much of the wage burden from employers to customers, enables wage theft, and leaves millions of workers vulnerable, while highlighting policy solutions and the need for reform.
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