{"id":2340683,"date":"2024-09-13T11:29:56","date_gmt":"2024-09-13T15:29:56","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tipped-wage-hikes-have-no-impact-on-reducing-earnings-gaps-study-washington-examiner\/"},"modified":"2024-09-13T11:41:16","modified_gmt":"2024-09-13T15:41:16","slug":"tipped-wage-hikes-have-no-impact-on-reducing-earnings-gaps-study-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tipped-wage-hikes-have-no-impact-on-reducing-earnings-gaps-study-washington-examiner\/","title":{"rendered":"Tipped wage hikes have no impact on reducing earnings gaps: Study &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftipped-wage-hikes-have-no-impact-on-reducing-earnings-gaps-study-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2340683&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/reliable-power-during-the-energy-transition-requires-natural-gas\/\" title=\"Reliable Power During The Energy Transition Requires Natural Gas\">recent study conducted<\/a> by economists \u200dfrom the University of \u200bCalifornia-Irvine, commissioned by the Employment Policies Institute (EPI), challenges the\u2063 claims of\u200d anti-<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-minimum-wage-hike-would-kill-family-owned-restaurants-business-owner-warns\/\" title=\"Biden Minimum Wage Hike Would Kill Family-Owned Restaurants, Business Owner Warns\">tip credit<\/a> activists in Illinois. The study suggests that eliminating\u2062 the current tip credit system does \u2063not address earnings inequities \u200dfaced\u2063 by women and\u200d minority workers in the restaurant industry. Instead, it found that increasing the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/heres-how-the-gops-stimulus-package-compares-to-bidens\/\" title=\"Here\u2019s How the GOP\u2019s Stimulus Package Compares to Biden\u2019s\">tipped minimum wage<\/a> actually exacerbates \u2062the wage\u2062 gap between minority tipped employees and their white counterparts. \u2062According to Professor\u200b David \u2062Neumark from UC-Irvine, \u2062the data indicates that raising tipped minimum wages does not\u200d resolve the earnings discrepancies among different demographic groups.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Tipped wage hikes have no impact on reducing earnings gaps: Study<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1759604\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square) &ndash; With a move to expand the elimination of a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/brandon-johnson-secures-another-win-for-liberal-agenda-in-chicago\/\" title=\"Brandon Johnson secures another win for liberal agenda in Chicago\">tipped wage<\/a> throughout Illinois, a new study refutes anti-tip credit activists&rsquo; claims that eliminating the current tip credit system would reduce inequities faced by women and minority workers. &nbsp;<\/p>\n<div class=\"article-paywall\">\n<p>The Employment Policies Institute (EPI) released a&nbsp;<strong><a href=\"https:\/\/epionline.org\/app\/uploads\/2024\/09\/240826_EPI_TipsAndEarningsGaps_Doc.pdf%20\" target=\"_blank\" rel=\"noreferrer noopener\">new study<\/a><\/strong>&nbsp;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.<\/p>\n<p>The study analyzes U.S. Census Bureau data and found tipped wage hikes are shown to increase, rather than decrease, the hourly wage gaps between minority tipped employees and white tipped employees.<\/p>\n<p>&ldquo;The data shows that raising tipped minimum wages does not impact earnings shortfalls of minorities or women relative to white men,&rdquo; said David Neumark, professor of economics at the University of California-Irvine. &ldquo;Tip credit elimination is an ineffective solution to solve a very real problem of lower pay for minorities and women.&rdquo;<\/p>\n<p>State Rep. Lisa Hernandez, D-Cicero, has led an effort to expand Chicago&rsquo;s wage hikes statewide, but her legislation stalled in Springfield.<\/p>\n<p>&ldquo;We fully intend to continue working on this bill to ensure our workers in Illinois are taken care of,&rdquo; said Hernandez.<\/p>\n<p>An EPI report showed that full-service restaurant employment in the Chicago area declined in the months leading up to the July 1 wage increases, a sign that restaurants were bracing for future wage increases.&nbsp;&nbsp;<\/p>\n<p>The Illinois Restaurant Association predicts some diners will now tip less and lower take-home pay for restaurant employees.<\/p>\n<p>The latest study comes as the Harris campaign changed its policy platform to include ending the tip credit after lobbying from the group One Fair Wage, and just a few months after the tip credit elimination began to roll out in Chicago.&nbsp;<\/p>\n<p>&ldquo;Anti-tip credit organizations like One Fair Wage have crusaded against tipping in America for years, claiming that eliminating the tip credit will reduce discrimination and inequality in the industry,&rdquo; said EPI research director Rebekah Paxton. &ldquo;The data shows that&rsquo;s simply not true.&rdquo;<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1759604\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1759604\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A recent study challenges the assertions made by anti-tip credit advocates regarding the elimination of tipped wages in Illinois, suggesting it would not alleviate disparities experienced by women and minority workers. Conducted by economists from the University of California-Irvine and released by the Employment Policies Institute (EPI), the research investigates how increases in tipped minimum wage influence earnings gaps among restaurant employees. The findings indicate that raising tipped wages does not narrow the income gap between white male workers and their female or minority counterparts; instead, it appears to widen these gaps. David Neumark, an economics professor at UC-Irvine, stated that increasing tipped minimum wages fails to address pay disparities for minorities and women compared to white men, deeming tip credit removal an ineffective solution for this issue. State Representative Lisa Hernandez has been advocating for statewide wage increases similar to those in Chicago but has faced legislative hurdles. An EPI report noted a decline in full-service restaurant employment in Chicago prior to recent wage hikes, indicating restaurants were preparing for increased labor costs. The Illinois Restaurant Association warns that some customers may reduce their tipping, negatively affecting restaurant workers&#8217; earnings. This study emerges as political discussions evolve around ending tip credits following lobbying efforts from groups like One Fair Wage, which have long argued that abolishing such credits would combat discrimination within the industry\u2014a claim EPI&#8217;s research director Rebekah Paxton asserts is unfounded based on current data<\/p>\n","protected":false},"author":1,"featured_media":2340684,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/minimum-wage-and-money.webp","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[40831,40832,40829,40830],"class_list":["post-2340683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-earnings-gap","tag-economic-study","tag-tipped-wage","tag-wage-hikes"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/minimum-wage-and-money.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2340683","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2340683"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2340683\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2340684"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2340683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2340683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2340683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}