The history of tipping—from sixteenth-century England to United States in the 1910s

Tipping is a multi-billion-dollar phenomenon that challenges the traditional assumption of selfish economic agents who have no feelings and do not care about social norms. This article reviews the early history of tipping and offers an economic analysis of different aspects of tipping. Using the historical evidence, it then addresses two major questions about tipping: why do people tip? And does tipping improve service quality? The reasons for tipping changed over the years, but conforming to social norms and avoiding embarrassment were generally the main reasons. Tipping seems to improve service quality; the extent of the improvement varies across occupations.     

Tipping as risk sharing

Tipping is often dismissed as an exception to the assumption of rational economic agents. This paper describes situations where tipping is, in fact, an effective mechanism for risk sharing and welfare improvement. When risk-averse customers purchase a service with uncertain quality, tipping can reduce the customer's exposure to risk by making part of the price of the service discretionary. These findings help explain why we tend to tip restaurant workers but not retail workers and why some high-risk service providers, such as lawyers and automobile mechanics, are not typically tipped.     

Why are we more likely to tip some service occupations than others? Theory,evidence, and implications

Ideas about why consumers tip some service occupations more often than others are tested using occupation scores derived from online ratings of 122 service occupations. Results indicate that U.S. consumers are more likely to tip occupations for which (i) workers’ performances can be more easily evaluated by consumers than by managers, (ii) workers provide customized service, (iii) workers’ income, skill and needed judgment are low, and (iv) workers are less happy than customers during the service encounter. Occupations with greater frequency of customer patronage and/or greater likelihood of encountering the same service provider on multiple service occasions are not more likely than other occupations to be tipped. These findings support some and disconfirm other expectations derived from a theory that occupational differences in tipping are attributable to occupation characteristics that more strongly/consistently evoke motives for tipping. They also identify types of services for which counter-normative tipping policies are more or less likely to be successful and suggest sources of resistance that must be overcome if those policies are to succeed.     

Tip Work: Examining the Relational Dynamics of Tipping beyond the Service Counter

Tips constitute a growing form of income for roughly three million American workers today. While existing scholarship on tipping focuses on worker‐customer dynamics, it neglects the implications of gratuities beyond the service counter. Drawing on the case of restaurant workers in Los Angeles, this study analyzes tip work, the bundle of social relations and labor experiences framed by tips in commercial settings. I argue that tipping strains relations between subgroups of workers who, despite collectively producing service, are subject to unequal access to tip earnings. Tips thereby shape relations among workers in ways that exacerbate existing organizational and social hierarchies.     

Service gratuities and tipping: A motivational framework

In many countries around the world, consumers leave voluntary payments of money (called “tips”) to service workers who have served them. Since tips are an expense that consumers are free to avoid, tipping is an anomalous behavior that many economists regard as “irrational” or “mysterious”. In this paper, I present a motivational framework that offers plausible explanations for: (1) why people tip, (2) how tipping norms came into existence and evolve over time, (3) why tipping varies across individuals and situations, (4) why tipping is more common for some occupations than others, and (5) why tipping varies across nations. Many hypotheses generated from this framework are supported by existing research, but many other implications of the framework have yet to be adequately tested. Thus, the framework provides a promising and much needed theoretical guide for future research on a fascinating consumer behavior.     

Business strategy and the social norm of tipping

Tipping is an important economic phenomenon, involving about $47 billion a year in the US food industry alone, and trillions of dollars across different occupations and countries over the years. Moreover, tipping is a major source of income for millions of workers. This article discusses the implications of tipping for business strategy in the relevant industries. For example, firms can choose to impose a compulsory service charge in lieu of tipping - what are the advantages and disadvantages of doing so? How does tipping change the profit-maximizing level of investing in screening job applicants, training workers, monitoring them, and providing performance-based incentives by the firm? Can industries such as the music industry use tips (i.e., prices being voluntary and determined by the customers) as an alternative business model?     

Economic Motivations and Moral Controls Regulating Discrimination against Black and Hispanic Diners

Racial discrimination in restaurant service is often depicted as an economically rational response to servers' concerns about perceived inadequate tipping by black and/or Hispanic customers. However, drawing from sociological and criminological theories that critique the limits of economic models of human behavior, we argue that discrimination against black and Hispanic diners may be inhibited by servers' moral concerns about discrimination. Further, such moral restraints might also buffer the influence of economic motives regulating discrimination. Ordinal logistic regression models of survey data collected from a sample of U.S. restaurant servers (N = 872) are employed to assess whether race‐based perceptions of customers' tipping behaviors and moral restraints interact to predict the prevalence and frequency of servers' self‐reported discrimination against black and Hispanic diners. Results suggest that servers' economically motivated, race‐based beliefs about the tipping practices of black, Hispanic, and white customers are associated with self‐reported discrimination. Specifically, we find that servers who harbor negative attitudes toward the tipping practices of customers of color (i.e., blacks or Hispanics) or positive attitudes toward whites' tipping behaviors are also more likely to report withholding effort from their black and Hispanic patrons. However, servers with strong moral restraints are more likely to refrain from discriminating against black and Hispanic diners, or do so less frequently, despite expressing concerns about inadequate tipping practices among black and Hispanic vis‐à‐vis white clientele.     

Black–White Earnings Gap among Restaurant Servers: A Replication,Extension, and Exploration of Consumer Racial Discrimination in Tipping

There is a rich history of social science research centering on racial inequalities that continue to be observed across various markets (e.g., labor, housing, and credit markets) and social milieus. Existing research on racial discrimination in consumer markets is, however, relatively scarce and that which has been done has disproportionately focused on consumers as the victims of race‐based mistreatment. As such, we know relatively little about how consumers contribute to inequalities in their roles as perpetrators of racial discrimination. In response, in this article, we elaborate on a line of research that is only in its infancy stages of development and yet is ripe with opportunities to advance the literature on consumer racial discrimination and racial earnings inequities among tip‐dependent employees in the United States. Specifically, we analyze data derived from an exit survey of restaurant consumers (N = 394) in an attempt to replicate, extend, and further explore the recently documented effect of service providers’ race on restaurant consumers’ tipping decisions. Our results indicate that both white and black restaurant customers discriminate against black servers by tipping them less than their white co‐workers. Importantly, we find no evidence that this black tip penalty is the result of inter‐racial differences in service skills possessed by black and white servers. We conclude by delineating directions for future research in this neglected but salient area of study.     

The Generational Equity Debate

This article discusses the generational equity debate in the United States-including its origins and the functions it serves. This debate has emerged in the context of concerns over the aging of the population, budgetary crises, growing health care costs, increased poverty among children, growing economic inequality, and declining faith in institutions. By potentially fragmenting support for Social Security and other social programs, the generational equity approach to framing public policy issues may serve the interests of those conservatives wishing to shrink and restructure the American approach to social welfare. However, the possibility exists that this debate could serve also as a forum to advance progressive ideas about universal access for persons of all ages to income and health benefits and employment opportunities.     

New Technology and the Human Services

Summary

Much has been written about the effects of new technology on the human services and about its possible implications for agencies, practitioners and service users. There is also an important and expanding literature on the implications of new technology for society as a whole, including much which addresses issues of social justice. Until recently, however, there have been only a few attempts to explore the range of issues specifically concerning the relationship between social justice and the human services. My main purpose here is to start to sketch out the parameters of the field of study relating new technology to social justice in the human services and to explore some of them in depth.

Three examples of different definitions of social justice are introduced, viz.; justice as equity; flexible individualised justice; and empowerment. Then normative and ethical considerations in relation to new technology in the human services are briefly reviewed. In the main body of this paper these issues are brought together in relation to three key areas (i) the manager/professional interface (ii) strategies for new technology implementation-top down or bottom up and (iii) the relationship between social worker and service user. Finally some conclusions are drawn about the possibilities for a synthesis between competing visions of social justice.     

Customer Discrimination in Restaurants: Dining Frequency Matters

Using unique survey data collected outside of five Virginia restaurants, and controlling for subjective server productivity, as well as a variety of other factors, we compare the tip earnings of male and female servers. Evidence of customer discrimination is found, but only among those customers who frequent the restaurant the least, revealing that female servers earn comparable tips to male servers when the service quality they produce is about exceptional, but for any lower service quality their tips are smaller. This suggests that female servers are being held to a very high standard, and if this standard is not met, they are treated unfavorably in comparison to male servers who produce the same level of service quality. Additional evidence indicates that it is male customers driving these results.     

Wage Inequality and Performance in Nonprofit and For‐Profit Organizations

This article examines the effects of several forms of wage inequality on service quality and employee effort. We suggest that two popular theories, tournament and fair wage/equity, are not necessarily competing. Each theory accurately describes aspects of employee behavior, but because of sectoral differences in organizational objectives and employee attitudes, tournament theory's predictions are relatively stronger in the for‐profit sector, while fair wage/equity theory's predictions are relatively stronger in the nonprofit sector. Using an employer–employee matched data set of nursing homes linked to a federal regulatory database and a resident survey, we found that ownership moderates the relationship between wage inequality and service quality. Although wage inequality positively affects service quality in the for‐profit sector, the reverse is true among nonprofit organizations. We also found that overall wage inequality in the workplace has a more pronounced influence on employee discretionary effort than does the employee's place in the distribution of wages.     

Ethnic Segregation,Tipping Behavior,and Native Residential Mobility

We study tipping behavior in residential mobility of the native population in Sweden between 1990 and 2007. Using regression discontinuity methods, we find that the native population growth in a neighborhood discontinuously drops once the share of non‐European immigrants exceeds the identified tipping point. Native tipping behavior can be ascribed to both native flight and native avoidance. Natives with a high level of educational attainment and the highest labor earnings are more likely to move from neighborhoods that have tipped. We conclude that tipping behavior is likely to be associated with ethnic as well as to socio‐economic segregation in Sweden.     

The generational equity debate: a progressive framing of a conservative issue

This article discusses the generational equity debate in the United States--including its origins and the functions it serves. This debate has emerged in the context of concerns over the aging of the population, budgetary crises, growing health care costs, increased poverty among children, growing economic inequality, and declining faith in institutions. By potentially fragmenting support for Social Security and other social programs, the generational equity approach to framing public policy issues may serve the interests of those conservatives wishing to shrink and restructure the American approach to social welfare. However, the possibility exists that this debate could serve also as a forum to advance progressive ideas about universal access for persons of all ages to income and health benefits and employment opportunities.     

Distributive Justice in the Household

Abstract

We analyze the theoretical basis on which wives and husbands evaluate the fairness of the division of household labor. Using distributive justice theory, we argue that evaluations are based on beliefs about equality and equity rules and social comparisons. We developed a number of formal models to account for evaluations of housework fairness and compare these with data from the 1987 National Survey of Families and Households. We find that husbands' evaluations of fairness of the division of household labor are based on more traditional gender-based division of labor as their comparisons tend to be based on comparisons to other men's participation in housework. In contrast, wives' evaluations are based on both gender role norms and the justice principle of marital equality, as they tend to be based on comparisons between their spouse and themselves.     

On large enterprises: new findings from a European comparison

The recent evolution of Italian capitalism shows the increasing relevance of large enterprises at three levels: the economic and institutional environment, the ownership structure, and the financing policy. A comparison of the financial structure of Italian large enterprises with those of other European countries (France, Germany, and Spain), using Bank for the Accounts of Companies Harmonised data, shows their financial fragility, where the prevalence of debt over equity justifies the still strong and close relationship between ownership control and management in their strategies and the prevalence of obsolete bank–firm relationships based on short-term external finance and multiple business lendings. These factors slow down firms’ expansion and consequently the need for companies to grow so as to face the new global market. Finance is confirmed as a determinant of growth both in size and in organisation. We conclude that a pivotal role for the growth of Italian firms lies in a “revised” relationship between size, governance, and the firms’ financial structure.     

Global Processes, Local Consequences: Gender Equity and Health Sector Reform in Peru

This article brings into relief the gendered tensions and contradictionsthat have resulted from Peru’s neoliberal health sectorreforms. Previous studies were clear that economic adjustmenthad a negative impact on women and gender relations. I showmore nuanced effects of neoliberal policies when applied tohealth sector reforms. To evaluate these policies, I utilizethe distinction between redistribution and recognition. I departfrom the supposition that policies serve either redistributiveor recognition ends and show that single policies can have bothtypes of effects. I conclude that policies based on neoliberalprinciples in some instances have a negative impact on women,in other instances reify existing unequal gender relations,while in still others open up spaces for positive change. Onthe whole, however, neoliberal health reforms have had a negativeimpact on gender equity.     

How Retired Households and Households Approaching Retirement Handle Their Equity Investments in the United States

This study examines how U.S. retired households and households approaching retirement change their equity holdings over time. Applying a decomposition analysis on the repeated cross-sectional U.S. Survey of Consumer Finances from 1989 to 2004, this study presents the effects of change in population size including mortality, change in financial wealth, and change in preference on the change in aggregate financial asset share invested in equity. A formal regression-based decomposition is also provided. It was found that there is a convex relationship between age and equity holdings as a share to financial assets for the older population. In addition, the risk-taking attitude-equity holdings profile shifted upward during the period of 1989 to 2004 for the older population. It is further documented that 70% of those senior equity investors chose financing retirement and financing future liquidity as the primary saving goals. Therefore, longevity pattern plays an important role for older population to hold equity.

Identifying Attributes of Relationship Management in Nonprofit Policy Advocacy

Relationship management has been identified as an important activity for policy advocacy, but little is known about the strategies that human service administrators use to develop and maintain relationships with policymakers. This exploratory study aimed at identifying attributes of relationship management strategies that are associated with policy advocacy outcomes. Data were gathered from a sample of 333 nonprofit human service providers in Florida. Controlling for organizational size, the findings indicated that several established dimensions of relationship management were associated with policy advocacy success: networking, sharing of tasks, and assurances. Post hoc analyses found that the relationship between policy advocacy success and the domains of access and openness were respectively mediated by networking and sharing of tasks. Implications for nonprofit administrators and researchers are discussed.     

Value for money: A utilization-focused approach to extending the foundation and contribution of economic evaluation

Value for Money (VfM) is an evaluative question about the merit, worth, and significance of resource use in social programs. Although VfM is a critical component of evidence-based programming, it is often overlooked or avoided by evaluators and decision-makers. A framework for evaluating VfM across the dimensions of economy, effectiveness, efficiency, and equity has emerged in response to limitations of traditional economic evaluation. This framework for assessing VfM integrates methods for engaging stakeholders in evaluative thinking to increase acceptance and utilization of evaluations that address questions of resource use. In this review, we synthesize literature on the VfM framework and position it within a broader theory of Utilization-Focused Evaluation (UFE). We then examine mechanisms through which the VfM framework may contribute to increased evaluation use. Finally, we outline avenues for future research on VfM evaluation.