An economist's work is never done . . .
Economists don't understand well why people tip. Now Tyler Cowen wants an explanation for why some restaurants are getting rid of tipping. An economist's work is never done . . .
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August 31, 2005
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» Tips, Service Charges and Taxes. from Tim Worstall
Tyler Cowen and Division of Labour are chewing over the legal differences between tips and service charges. (via Newmark’s Door). [Read More]
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The reason, I am sure has to do with tax considerations. Its a stupid move, Tipping is societies most direct connection of remuneration for quality of work received. (except perhaps Prostitution)
Posted by: Kyle | September 01, 2005 at 12:10 AM
Sorry, can’t get trackbacks to work today. The tax system has a lot to do with it. Plus bastard management as well.
http://timworstall.typepad.com/timworstall/2005/09/tips_service_ch.html
Posted by: Tim Worstall | September 03, 2005 at 06:55 AM