Re: ECON: The Case Against Micropayments

From: Michael Lorrey (
Date: Wed Feb 21 2001 - 15:05:08 MST

Chris Rasch wrote:
> How much money could people make in tips? As (DiCola, 2000) points out, most
> people who make a substantial fraction of their income from tips receive an
> overall low salary, and low social status (bellboys, waitresses). On the
> national scale, real world tipping gross revenues are quite large--$20
> billion/year, larger than the gross revenues of the entire recordingindustry.

Keep in mind that 'reported' tips are those reported to the IRS. In my
experience in the restaurant industry, people typically report only 50%
of their tips (at best), and wait and bar staff who are skilled,
effective, and likable can easily make several hundred dollars a day
(even my little brother has $200 days on occasion), and I don't think I
even need to mention that most all strippers are completely tip income
earners (and few of them a) report their earnings accurately and b)
don't make a quite decent living).


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