She Works Hard for the Money

Media Type: Music Topic: Income & Poverty

Donna Summer

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This classic Donna Summer song is about a waitress she met at a local restaurant who was working two jobs. Donna could see “she works hard for the money.” Many economists are somewhat puzzled by tipping behavior. The tip is given after the meal – when it has no impact on the service rendered. Yet most people tip in spite of that fact. Explain why consumer’s tip and under what circumstances you’d expect tips to be less and more generous.

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