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Sheng-Kai Ma

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Open access Sep 2026

The Role of Search Frictions and Monopsony Power in Shaping the Effects of Tipped Minimum Wage Policy in the U.S. Restaurant Industry

In the U.S. restaurant industry, tipped workers receive a large share of their earnings from customers rather than from their employers, and tip credit provisions allow restaurants to pay cash wages below the standard minimum wage. This paper examines why this compensation structure persists and how raising the tipped...

Sheng-Kai Ma · 0 citations

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