People engaged in the hospitality sector usually receive lower wages, and tips make up a certain percentage

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People engaged in the hospitality sector usually receive lower wages, and tips make up a certain percentage of their income. However, some occupations in a hotel may provide considerably lower daily average tips than others.

For instance, providing room service may earn a bigger tip than performing a back-end cleaning service. Therefore, the management might ask their staff to pool their tips and then redistribute it among the entire staff, based on a pre-arranged system. How would the tip-pooling system affect the productivity of the staff?

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Principles Of Economics

ISBN: 9781292294698

13th Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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