Tipped wage hikes have no impact on reducing earnings gaps: Study

(The Center Square) – With a move to expand the elimination of a tipped wage throughout Illinois, a new study refutes anti-tip credit activists’ claims that eliminating the current tip credit system would reduce inequities faced by women and minority workers.

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.