Tipping in America

Tipping in Restaurants and Around the Globe: An Interdisciplinary Review Michael Lynn Introduction On an average day, approximately ten percent of the U.S. population eats at sitdown/family restaurants. In an average month, approximately 58% do so (Media Dynamics, 2001). After completing their meals, almost all of these restaurant diners leave a voluntary gift of money (or tip) for the server who waited on them (Speer, 1997). These tips, which amount to approximately $21 billion a year, are an important source of income for the nation’s two million waiters and waitresses (Lynn, 2003b). In fact, tips sometimes represent 100 percent of waiters and waitresses take home pay, because tax withholding eats up all of their hourly wages (Mason, 2002). Of course, tipping is not confined to restaurant servers or to the United States. In the U.S., consumers also tip barbers, bartenders, beauticians, bellhops, casino croupiers, chambermaids, concierges, delivery persons, doormen, golf caddies, limousine drivers, maitre-d’s, masseuses, parking attendants, pool attendants, porters, restaurant musicians, washroom attendants, shoeshine boys, taxicab drivers, and tour guides among others (Star, 1988). Although not as common as in the U.S., tipping is also practiced in most countries around the world (Putzi, 2002). In fact, national differences in tipping are a source of uncertainty for many international travelers and local tipping practices are a topic covered in most travel guides. Tipping is an interesting economic behavior, not only because it is widespread and practically important, but also because it is an expense that consumers are free to avoid. Although called for by social norms, tips are not legally required. Furthermore, since tips

are not given until after services have been rendered, they are not necessary to get good service in establishments that are infrequently patronized. For this reason, many economists regard tipping as “mysterious” or “seemingly