Friday, January 28, 2011

Unraveling of pathology fellowships

A forthcoming paper in the journal Human Pathology gives a detailed account of the unraveling of the market for Pathology subspecialty fellowships, including the now familiar path towards earlier offers more diffuse in time, and to the increased hiring of internal candidates. It's an unusually thorough report that details some of the special pathologies of the Pathology labor market, and also compares it to the experience of other subspecialties such as Gastroenterology.

"Unlike the application process for first-year Pathology Residency, which is run through the National Resident MatchingProgram, applications for Subspecialty Pathology Fellowships are not coordinated by any consistent schedule. Competition for Subspecialty Pathology Fellowships has consistently resulted in undesirable drift of the fellowship application process to dates that are unacceptably early for many fellowship applicants. Responding to widespread dissatisfaction voiced by national pathology resident organizations, in 2007, the Association of Pathology Chairs began evaluation and potential intervention in the fellowship application process. Three years of intermittently intense discussion, surveys, and market analysis, have led the Council of the Association of Pathology Chairs to recommend implementation of a Pathology Subspecialty Fellowship Matching program starting in the 2011 to 2012 recruiting year, for those Applicants matriculating in fellowship programs July 2013. We report on the data that informed this decision and discuss the pros and cons that are so keenly felt by the stakeholders in this as-yet-incomplete reform process."

That's from the abstract of

"Pathology subspecialty fellowship application reform 2007 to 2010" by James M. Crawford MD, PhD,  Robert D. Hoffman MD, PhD, W. Stephen Black-Schaffer MD, in Human Pathology (2010)

Thursday, January 27, 2011

Sales by museums

The NY Times reports on a Philadelphia museum's sales of parts of its collection to finance renovations, and on the controversy this has caused: Museum Sells Pieces of Its Past, Reviving a Debate

"A galloping horse weather vane sold for about $20,000, and the cigar store Indians brought in more than $1 million. A Thomas Sully oil painting of Andrew Jackson netted $80,500, and a still life by Raphaelle Peale, part of the family that put portraiture in this city on the map, was auctioned at Christie’s for $842,500.

"These were just a few of more than 2,000 items quietly sold by the Philadelphia History Museum over the last several years, all part of an effort to cull its collection of 100,000 artifacts and raise money for a $5.8 million renovation of its 1826 building.

In doing so the museum stepped into the quicksand of murky rules, guidelines and ethical strictures meant to discourage museums everywhere from selling collections to pay bills. It is one of the hottest issues in the museum world today. With budgets shrinking in a bad economy, the pressure to generate revenue is growing along with fears that museums are squandering public trusts meant to preserve the artifacts of the past for future generations.

The National Academy Museum in New York, Fisk University and Brandeis have all recently drawn fire — and even sanctions — for selling or planning to sell artworks, and none of them sold as many works as the museum here.

"In general art and objects are supposed to be sold only to finance acquisitions, though different museums are governed by different standards. Art museums, regulated by a formal code of the Association of Art Museum Directors, may not sell work for any other reason.

"As a history museum, though, this institution — formally called the Philadelphia History Museum at the Atwater Kent — is subject to separate, less stringent guidelines put forward by other associations. So museum officials say the installation of new carpet, paint and lighting were all legitimate expenses to be paid from the proceeds under the guidelines of the  American Association of Museums, which say that sales can be used for the “direct care” of a collection. Adding to the confusion, there is a third set of standards maintained by theAmerican Association for State and Local History permitting proceeds to go toward the “preservation” of a collection, a similarly broad term.

"The New York State legislature, confronting this maze of precepts, recently considered passing a law that would make selling collections — the art world term is deaccessioning — to pay operating expenses illegal. It never made it to the Assembly floor because museums opposed it."

And here's another story about a librarian who submitted her resignation over deaccessioning: Small Town, Big Word, Major Issue
"Deaccessioning is the kind of word that makes eyes glaze over and can seem to be the preserve of dusty intellectuals and large museums. But it’s just a fancy name for the sale or giving away of art and artifacts by museums and other cultural organizations, and the dust-up here in this city of about 5,000 demonstrates that such debates occur in all kinds of places, big and small, where people feel protective about materials in their care.
With her personal gesture of protest in late September, Ms. Phillips stepped into a growing public controversy surrounding institutions that have sold or considered selling parts of their collections, which have been entrusted to them for the public’s benefit. Some say such sales can compromise collections, and others argue that museums, libraries and historical societies have to cull their collections periodically, particularly if there is pressure to pay their bills.
In Little Falls, library officials said they were selling things to raise money, not to cover operating costs, which institutions try to avoid, but to preserve other artifacts.
“We don’t have the space to take care of some of these items,” said Chester P. Szymanski III, the library’s president. “We’re not a museum. We’re a library.”

Wednesday, January 26, 2011

Call for papers: Game Theory in Trade and Development

Avinash Dixit writes: "  I am organizing a two-day (July 19-20) workshop on applications of game theory in the fields of international trade and economic development, as a part of the  Game Theory Society's summer festival this year. I would be grateful if you would publicize the attached call for papers among your colleagues and thesis-writing graduate students."

Call for papers
Game Theory Society’s 2011 Summer Festival
Two-day workshop (Tuesday-Wednesday July 19-20) on
Applications of Game Theory in Trade and Development

               The two-day workshop will consist of four sessions. Each session will have three papers: one invited overview paper, and two contributed new research papers. The themes of the sessions, and the invited presenters of the overview papers, are as follows:

1. International negotiations on international trade and related issues
(investment, intellectual property rights, environment etc)
     Kyle Bagwell, Stanford  University

2. Foundations of constitutions and their implications for development
     Roger Myerson, University of Chicago

3. Trade and investment in developing countries and transition economies
               with poor governance
     Avinash Dixit, Princeton University

4. Design of incentives and organizations for provision of public services
               in developing countries
    Timothy Besley, London School of Economics

               Submissions for contributed papers should be sent to me as PDF files attached to e-mail messages. Complete papers are preferred but detailed abstracts are acceptable. In the e-mail message please state for which of the four sessions you are submitting your paper.  Partial travel support for authors of accepted papers is available.

             The deadline for submissions is March 15, 2011 and decisions will be conveyed by April 15.

Avinash Dixit, workshop organizer



Tuesday, January 25, 2011

Kidney transplantation in Canada

A new report, Treatment of End-Stage Organ Failure in Canada; 2000 to 2009 draws on data from CIHI's Canadian Organ Replacement Register (CORR). (The report can be accessed directly here.) A news report focusing on kidney transplantation is here: Kidney transplants can save millions in dialysis costs: organ transplant report.

From the news summary:
"The number of people living with kidney failure more than tripled in Canada in the last 20 years, new statistics show, but experts hope to save lives and millions of dollars in dialysis costs by expanding organ donor programs.


"A report released Thursday by the Canadian Institute for Health Information shows that at the end of 2009, there were 37,744 people being treated for end-stage renal disease, with 59 per cent of them on dialysis and 41 per cent living with a functioning kidney transplant.

"Kidney failure rates appear to be stabilizing, but the supply of organs available for transplant has not kept pace with growing demand.
About 3,000 people were on waiting lists for a transplant in 2009. If they all received a transplant, it could result in annual savings of $150 million, the institute estimated.
...
"As for transplants, Nickerson said deceased donation tends to be better than average in Quebec and Atlantic Canada, at between 16 and 19 donors per million population.


"If you look at the U.S., the average donation rate is around 26 to 28 donors per million; if you look at Spain, it's up in the 30 donors per million range," Nickerson said.
"Donation rates can be significantly higher than what they are currently in Canada. And we've been stuck at this sort of 14 to 15 national average for a number of years now."
...
"CIHI estimated the annual cost of hemodialysis treatment at $60,000 per patient, compared to a one-time cost of $23,000 for a transplant plus $6,000 per year for medication.

Nickerson said savings are about $250,000 over five years.

"Sixteen to 20 years is the average expectancy of a living donor kidney transplant," he said, adding that deceased donor transplants would probably last 10 to 12 years.
Between 2000 and 2009, there were 10,641 kidney transplant procedures registered in the Canadian Organ Replacement Registry. Of these, 11 per cent were re-transplants. Of the 9,430 kidney-only first transplants, 61 per cent used deceased donor kidneys.
Since 2006, the number of living donor kidney transplants has been stable, fluctuating between 440 and 461 transplants per year.
...
"Canadian Blood Services recently launched a paired kidney exchange registry, which allows pairs to receive and donate a kidney from among other registered pairs even if they're not matches for each other.

Nickerson said 185 pairs are registered, and 65 kidney transplants have been done that otherwise wouldn't have occurred.
"And we know that this is only the beginning," he said.

"We estimate that we should have on an annual basis another 200 to 250 pairs joining annually and that we can facilitate about half of them finding transplants on a yearly basis."

Monday, January 24, 2011

Swiss parliament proposes to decriminalize incest

Switzerland considers repealing incest laws
"The upper house of the Swiss parliament has drafted a law decriminalising sex between consenting family members which must now be considered by the government.

"There have been only three cases of incest since 1984.

"...children within families will continue to be protected by laws governing abuse and paedophilia.

"Daniel Vischer, a Green party MP, said he saw nothing wrong with two consenting adults having sex, even if they were related.
"Incest is a difficult moral question, but not one that is answered by penal law," he said.

"Barbara Schmid Federer of The Christian People's Party of Switzerland said the proposal from the upper house was "completely repugnant."
"I for one could not countenance painting out such a law from the statute books."
The Protestant People's Party is also opposed to decriminalising the offence which at present carries a maximum three year jail term.
A spokesman for the party said: "Murder is also quite rare in Switzerland but no one suggests that we remove that as an office from the statutes."

See also Wen schützt das Inzestverbot? ("Who is protected by the prohibition against incest?")

HT: Sven Seuken

My previous posts on incest as a repugnant transaction are here, including this one which concerned a similar repeal in Romania: ''Not everything that is immoral has to be illegal'
.

Sunday, January 23, 2011

Sniping on eBay, in Australia (radio interview)

Apparently eBay users in Australia are concerned about sniping (last minute bidding). I was interviewed for a radio report on the subject by Hagar Cohen, which you can hear here (in Australian): Snipe bidding: the dark side of online shopping.

My papers on the subject, with Axel Ockenfels and Dan Ariely are here.

Saturday, January 22, 2011

Colbert on school choice in Wake County

Stephen Colbert explains the logic behind returning to a system of local schools (video, funny).

HT: Tim Gray

Friday, January 21, 2011

Jobs in kidney exchange

Methodist Specialty and Transplant Hospital in San Antonio is advertising for a Vice President, Transplant Services

In their ad they highlight their active kidney exchange program:
"Methodist Specialty and Transplant Hospital Recognition
"•# 1 SWAP Program in the country

"•# 1 kidney exchange program and 3-way paired kidney exchange program. Most recently performed the world’s largest kidney exchange transplant chain at a single center on November 11-13, 2010 with 16 recipients and 17 Donors involved and the transplant.

"•Performed 25 heart transplants year to date with a 95% success rate and completed 13 ventricular assist devices.

"•For additional information about the transplant program visit: www.texastransplant.com “METHODIST SPECIALTY AND TRANSPLANT HOSPITAL”

Homophobia: gay sex remains a repugnant transaction for many

If a repugnant transaction is one that some people want to engage in and others don't want them to, then sex is surely the most ancient. Some of this comes from the desire to control procreation (and be able to identify the father of each child), but that doesn't account for the repugnance of homosexual sex.

Elsewhere I've posted how this ancient repugnance seems to be crumbling, as same sex marriage slowly becomes legal in more places (and as the U.S. armed services have been slowly pushed to more clearly welcome the service of gay soldiers). But two recent articles make the point that homosexual sex is still a widely repugnant transaction.

Gays in Africa face growing persecution, human rights activists say
"In Uganda, a bill introduced in parliament last year would impose the death penalty for repeated same-sex relations and life imprisonment for other homosexual acts. Local newspapers are outing gays, potentially inciting the public to attack them, activists say."

"In Uganda, we look at homosexuality as an abomination. It is not normal," said Nsaba Butoro, Uganda's minister on ethics and integrity and a vocal supporter of the bill. "You are talking about a clash of cultures. The question is: Which culture is superior, the African one or the Western one?"

"More than two-thirds of African countries have laws criminalizing homosexuality. In May, a judge in Malawi imposed a maximum prison sentence of 14 years with hard labor on a gay couple convicted of "unnatural acts" for holding an engagement ceremony. Malawi's president pardoned the couple after international condemnation, particularly from Britain, Malawi's largest donor.

"Gays have also been attacked this year in Zimbabwe, and in Senegal their graves have been desecrated. Gays in Cameroon have been attacked by police and targeted in the media. In Gambia, President Yahya Jammeh has vowed to expel gays from the country and urged citizens not to rent homes to them.

"One exception is South Africa, whose constitution was the first in the world to outlaw discrimination based on sexual orientation and is among a few countries in the world that have legalized same-sex marriages."

And here's an article closer to home: Gay Bashing at the Smithsonian, about an artwork removed from the exhibit by the National Portrait Gallery recently.

Thursday, January 20, 2011

European carbon markets suspended

The suspension of trading on European carbon emissions markets has been covered fairly widely, with the most interesting (and critical) story I've seen being this one from the Telegraph. European carbon market suspended over fraud fears: "The European carbon market has been thrown into turmoil after the scandal-hit scheme was suspended for a week over suspicions of fraud."


"More than €2bn (£1.7bn) of trade is likely to be disrupted after the European Commission said it would prevent transactions until January 26.
"The suspension follows allegations that 475,000 carbon credits worth €7m were stolen in a hacking attack on the Czech carbon register. It appears that the intangible allowances were bounced between eastern European countries before disappearing without a trace."
...

"This is not the first challenge to the credibility of the €90bn annual market in carbon allowances
"Under the flagship scheme, companies need permits to emit carbon dioxide as part of the global fight against climate change and polluters are granted a certain number of emissions allowances that can be traded.
"But it has been plagued by fraud, with Europol estimating that carbon trading criminals trying to play the system may have accounted for up to 90pc of all market activity in some European countries during 2009. Fraudulent traders mainly from Britain, France, Spain, Denmark and Holland pocketed an estimated €5bn. Carbon allowances are particularly susceptible to fraud because they are high value, intangible and easily moved between different countries."

Wednesday, January 19, 2011

Kidney chains in India, and a millionaire nondirected donor

Kidney chains are coming to India, and one of the first (maybe the first) non-directed donors is a millionaire businessman: Kidney donation chain bank set up in Trichur

"19 January 2011 TRIVANDRUM — A leading industrialist in Kerala has set into motion a novel kidney donation chain by deciding to donate one of his kidneys to a stranger.

"Kochouseph Chittilapally, owner of V-Guard group of companies, signed the papers to donate his kidney to 48-year-old Joy from Palai on the occasion of the launch of a kidney bank at Trichur on Monday.

"The bank was set up by the Kidney Federation of India (KFI), founded by Fr Davis Chiramel, who had shown the way by donating one of his kidneys to a stranger one-and-half-years ago. The kidney chain — the first of its kind in India — is possible because of a new type of organ donation called a paired donation, in which a person who needs a kidney can get one by bringing up a donor.

"Joy became eligible to get the kidney after his wife, Jolly, agreed to donate her kidney to one Shamsuddin. His wife, Sainaba, will give her kidney to one John, and whose mother in turn will donate her kidney to Baiju.

"The chain ended here as Baiju could not get a donor among his close relatives. Fr Chiramel is not disappointed. He said he will be able to launch another chain shortly as there were people willing to donate their kidneys. “I was flooded with calls after the kidney bank was launched. Out of 150 callers I had till Tuesday afternoon, 10 were willing to donate their kidneys. We will get them medically examined and put them in the chain if they are fit to donate their kidneys,” the priest said."

Here's another story: Crorepati’s kidney in donor chain

HT: Nikhil Agarwal

Tuesday, January 18, 2011

Barter in a recession

In a Tight Holiday Season, Some Turn to Barter

"The proliferation of Web sites with names like Swap.com and SwapMamas have moved swaps from the home and the community center to online bazaars with millions of users. No industry figures exist on the number of for-profit startups, but officials at one of the largest, Swap.com, said they have over a million registered users and an inventory of 15 million items at any given time.

"ThredUP opened business in April as a clothing exchange site and expanded this month to toys. Mrs. Spitzer signed up as a member in August.
She said that she used to buy new clothes for her three children, all under age 7, every couple of months and then give them away as her children outgrew them. But after she joined ThredUP, she began viewing her children’s hand-me-downs as currency."

Swap.com and ThredUP charge a small fee for each trade ($1 and $5). I didn't see such a fee on SwapMamas, which also encourages people to offer their used goods as gifts when they don't find a coincidence of wants, and has a reputation system that is intended to make frequent givers also favored recipients of gifts.

Monday, January 17, 2011

Greg Lewis' market design course at Harvard

My colleague Greg Lewis will be teaching a market design course this semester, and sends this email:


"I just wanted to advertise the market design course I'm teaching this semester (Econ 2056b).  The syllabus can be found here.  It's designed to be a complement to both Al and Peter's class (Econ 2056) and Ariel's IO class (Econ 2610), and it's a mix of theory and structural empirical techniques.

I've mixed up the style of the course a bit from past years: from pretty much the second week on, we'll be alternating between lecture and discussion --- which means the students will have to work a little harder and participate more, and hopefully get more out in the end.

Hope to see you there!

Cheers
Greg"

Sunday, January 16, 2011

Organ donation in Tucson tragedy

9-year-old shooting victim's organs help save child

"Christina-Taylor Green, the 9-year-old girl killed in Saturday's shootings in Tucson, donated her organs.

"She was one of six people killed in the shooting that targeted U.S. Rep. Gabrielle Giffords outside a Safeway store northwest of Tucson. Giffords remains in critical condition.
...
"And a friend helping the Green family said they received a call yesterday from the organ donation network, telling them that Christina-Taylor's donation had already saved the life of a child on the East Coast."

HT: Bernie Keller

Saturday, January 15, 2011

Economics job market in Europe

The big marketplace for new Ph.D. economists is the one that takes place in North America each year in early January (see this recent paper), but in recent years the Royal Economic Society has attempted to get one going in Europe.

The 6th PhD Presentation Meeting of the Royal Economic Society  is going on this weekend, on Saturday 15th and Sunday 16th January 2011 at City University London.

"The aim of the event is to provide a service both for UK and European university economics departments wishing to recruit lecturers, and for PhD students seeking academic jobs in the UK or elsewhere in Europe. This annual meeting has grown to be an extremely successful event, well supported by both students and potential employers. The event consists of two days of students’ presentations and poster sessions. Participating institutions (pdf) attend these presentations and are also allocated a room at the conference site in order to arrange individual appointments with participating PhD candidates (pdf) during the course of the conference. "


Good luck to all those on the market.

(For departments interested in the theory of matching, I notice that one of the new Ph.D.s in attendance is Alex Nichifor, who is a coauthor of a very good paper: Stability and Competitive Equilibrium in Trading Networks . (His coauthors are John Hatfield, Scott Kominers, Mike Ostrovsky, and Alex Westkamp, and his Ph.D. advisor is Bettina Klaus.))

Tribal customs of academic disciplines

Some of the different ways that different academic disciplines organize their scholarship, and the signals they send about it, are discussed in a recent column in the Chronicle of Higher Education about tenure reviews.

"A fair analysis of a tenure candidate requires that the committee members know (or learn) about the culture of the relevant academic discipline, particularly with respect to norms of publication numbers, venues, authorship order, conference presentations, invited talks, and student or postdoctoral advising.

"Considerable variation in those features exists across academe, even within science and engineering fields. Whereas one academic discipline might value short publications in highly selective conference proceedings over peer-reviewed journal articles, another requires peer-reviewed journal articles (in high-impact journals) as the primary indicator of productivity. Similarly, one discipline might alphabetize author order, another always has the "brains behind the project" as the last author, and another considers the first author listed to be the most important. Some fields expect assistant professors to have advised one or more Ph.D. students through to the completion of their degree, but in other fields that would be considered unusual."

The different customs of publication order present some opportunities in interdisciplinary collaborations of the kind that arise in market design, particularly since the authors publishing outside of their disciplinary journals are freed from the burden of sending signals.

Friday, January 14, 2011

In France, civil unions aren't just for same sex couples

A pacte civil de solidarité in France is a civil union, something like a civil marriage, originally intended to help same-sex couples formalize their relationship, without expanding the official scope of marriage.  But these civil unions are easier to dissolve than formal marriages, and (the NY Times reports), opposite sex couples are also finding this less formal kind of union attractive: In France, Civil Unions Gain Favor Over Marriage

"French couples are increasingly shunning traditional marriages and opting instead for civil unions, to the point that there are now two civil unions for every three marriages.

"When France created its system of civil unions in 1999, it was heralded as a revolution in gay rights, a relationship almost like marriage, but not quite. No one, though, anticipated how many couples would make use of the new law. Nor was it predicted that by 2009, the overwhelming majority of civil unions would be between straight couples.

"It remains unclear whether the idea of a civil union, called a pacte civil de solidarité, or PACS, has responded to a shift in social attitudes or caused one. But it has proved remarkably well suited to France and its particularities about marriage, divorce, religion and taxes — and it can be dissolved with just a registered letter."

Meanwhile, in Britain, which also has civil partnerships, a lawsuit is underway to change the fact that both same sex marriage and different sex civil partnerships are illegal:

"Eight British couples will argue that the twin bans on same-sex marriages and heterosexual civil partnerships are unlawful and should be reversed.
"Over the last two months four homosexual couples have all been refused marriage licenses at register offices across England, while four heterosexual couples were turned away when they applied for civil partnership status.
"The couples will file a joint application to the court today, which is the fifth anniversary of the first civil partnership ceremonies in England."  

Thursday, January 13, 2011

Pictures from a matching conference (and a new matching paper)

I returned from Milan to the following cheerful message from Atila Abdulkadiroglu:

Dear all,

I hope you have had a cheerful holiday season, happy new year to you all.

I thought it would be better late than never, so here are also some photos from the "Roth and Sotomayor: Twenty Years After" conference: http://duke.edu/~aa88/RothandSotomayorTwentyYearsAfter/

This is all of the photos I got from our media relations person, I hope she got all of us at least in the first photo.

I would also like bring your attention a recent paper of mine:

"Generalized Matching for School Choice" ( http://duke.edu/~aa88/articles/GeneralizedMatching.pdf )
This paper makes the case that neither a one-sided matching model nor a two-sided matching model is adequate enough to capture some salient features of the school choice problem. It introduces a natural generalization to the matching models, and a natural extension of the stability notion. It characterizes student optimal stable matchings and introduces a new matching algorithm, Stable Transfer Cycles, that reduces to TTC when the problem is one-sided and becomes equivalent to Gale-Shapley's student optimal stable matching mechanism when the problem is two-sided.

Comments would be most welcome."

And here's the conference website to which the pictures refer:Roth and Sotomayor: Twenty Years After, May 7-9, 2010, and the first picture...

Wednesday, January 12, 2011

Specialized dating sites for the disabled

Searching for a mate is hard work, and it can be hard to find a match if you have special needs. So there's a demand for specialized dating sites: Difference Is the Norm on These Dating Sites

"Several dating Web sites for singles with health problems have started up in the last few years. Ms. Nevius joined Dating 4 Disabled, a site for people with an array of disabilities, including paralysis and multiple sclerosis. Other sites include NoLongerLonely, for adults with mental illness, and POZ Personals, for people who are H.I.V-positive."
...
"He said the worst part of dating was the anxiety over disclosing his H.I.V. status. Getting to know someone in an online community of people with H.I.V. allows relationships to form without the burden of the big reveal hovering overhead.


“Here everyone knows you have H.I.V.,” he said, “so it gets that barrier out of the way.”

"Another site, Prescription4Love, has communities dedicated to sexually transmitted diseases and physical disabilities, but also to other diseases that don’t conjure images of romance and intimacy, like diabetes and Parkinson’s. The site was created by Ricky Durham, whose late brother suffered from Crohn’s disease — a condition that came with literal baggage.

“He was a good-looking boy,” Mr. Durham said. “But when do you tell a girl that you have a colostomy bag? The first date? The third? There’s no good time.”

"Awkward issues that come with an illness can be discussed frankly and openly in an online space in which everyone is dealing with something out of the ordinary.

“Sexuality, travel, mobility, pain: Everything takes on a different dimension,” said Merryl Kaplan, who is in charge of member services for Dating 4 Disabled.

"The anonymity of the Internet allows people to be forthcoming and honest about what they are truly looking for in a companion. Among the almost 12,000 members of Dating 4 Disabled, for example, many specify the types of disabilities they would be open to dealing with in a long-term relationship.

“Like anyone else, people with disabilities have different preferences,” Ms. Kaplan said. “Someone with good mobility may prefer someone also mobile; others don’t limit at all.”

Monday, January 10, 2011

Tips, Tip Pooling, and Tip Credits

Restaurant wait-staff in the United States make a significant part of their incomes in tips left by satisfied or habit-driven or social-norm-conscious patrons (but this isn't a post about the large behavioral literature on restaurant tipping, e.g. here). A consequence of this is that restaurants and certain other employers can receive "tip credits" that release them from the obligation to pay the minimum wage, since their employees will be having part of their wage paid by their customers.

There's a body of law about what employers can and cannot do with tips (e.g. require them to be pooled, shared with non wait-staff, etc.), and about what constitutes a tip (e.g. not all "service charges" go to the server): see e.g. NoLo.com's  Tips, Tip Pooling, and Tip Credits: What Service Employees Need to Know

There are presently a number of lawsuits going through the courts about this, and some new legislation, discussed in an op-ed in the NY Times by Tim and Nina Zagat of Zagat's fame: Adding Fairness to the Tip

With the new year have come some new regulations in NY: New Rules Impose Systems for Sharing of Tips
"The new regulations apply to workers in restaurants and hotels and cover a number of issues, including who should pay for laundering “wash-and-wear” uniforms, like special T-shirts. The rules also raise the minimum wage for tipped employees, to $5 from $4.65 an hour for food service workers and to $5.65 from $4.90 an hour for service workers, a category that includes coat check workers in a restaurant or porters in hotels. (There is a separate minimum for workers at resort hotels.)


"The new rules also define the job categories that are eligible for shares in tips from the dining room: food service workers only, including waiters, bartenders and bussers, as well as sommeliers and hosts, provided they are not managers.

"The new rules allow restaurants to dictate both the system and the percentage allocated to each job category. Gratuities can be combined in a pool, to be divided by all the staff members who have helped a team effort. Or, individual servers can collect their own tips and give portions, or shares, to members of the team.

"The Labor Department will require that employers keep records of tip pools and shares; the records could be examined during investigations undertaken by the department on its own or in response to complaints.
...
"Higher-end, full-service restaurants tend to favor the pooling of tips, because it breeds less squabbling over stations and shift assignments, provides an incentive for teamwork and encourages the servers to police their own performance.


"The new regulations generally limit the pool to service workers in the dining room who interact with customers directly — like waiters — or indirectly, like servers who ferry plates from the kitchen to a station where another server picks them up and delivers them to the table. But bartenders, who prepare beverages for the dining room in a role analogous to that of a cook, can also share in the tip pool, even though kitchen staff members cannot.

“A lot of this arises from custom and tradition,” Ms. Lindholm said. “If you’re looking for perfect logic in this, it isn’t there.”