Paying a higher base wage reduces poverty rates for tipped workers: Poverty rates of non-tipped workers, tipped workers, and waiters and bartenders, by state tipped-minimum-wage level

Nationwide Low ($2.13 tipped minimum wage)  Medium (above $2.13 and below regular minimum wage)  Equal treatment (full minimum wage)
Non-tipped workers 6.5% 7.0% 6.0% 6.8%
Tipped workers 12.8% 14.5% 12.5% 10.8%
Waiters/bartenders 14.9% 18.0% 14.4% 10.2%

Source: Authors' analysis of Current Population Survey Annual Social and Economic Supplement microdata, 2010–2012

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