Firms don't want to raise wages because they're worried about a recession, so you pay workers instead.
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And now, businesses are trying to avoid making the larger wages those tips have augmented their responsibility, as the economy cools.
Jonathan Morduch — a professor of public policy and economics at New York University — told the Wall Street Journal that as businesses prepare for a potential recession, "they don't want to lock into higher wages."
"Businesses are happy to let workers earn more from tips, especially when there's no pressure to raise the tipped minimum," Morduch told the Wall Street Journal.
Persons:
you've, they're, It's, Scheherezade Rehman, Jonathan Morduch —, New York University —, Andy Kiersz, Jacob Zinkula, Laurence Kotlikoff, what's, Morduch
Organizations:
Service, George Washington University, Wall Street, New York University, Boston University
Locations:
Wall, Silicon