Words & Numbers
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Insightful weekly commentary on news & current events from economist Antony Davies and political scientist James R. Harrigan.
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Has Tipping Gone Out of Control?
August 9, 2017
In 1922, famed etiquette writer Emily Post advised her readers that 10% is the standard for tipping your waiter. Since then, “gratuity creep” has been so steady that tip jars are now ubiquitous and 25-30% is considered the rule in New York City. Uber once resisted this trend, but recently added a tipping feature to its app.
What is the economic rationale behind tipping? Does the usefulness of tipping diminish the more that a certain rate becomes an expectation? At a certain point, would it be better to do without the fuss involved and simply include that portion of a service-provider’s compensation in the wages paid by the employer?
Our valiant hosts, Antony Davies and James Harrigan explore these questions and more!
Show Notes
Supporting Data
- How Much Do Waiters Really Earn in Tips? | www.theatlantic.com
- PayScale's Restaurant Report Full Data | www.payscale.com
- Waiters and Waitresses | www.bls.gov
- Tips | www.dol.gov
- Fact Sheet - Wage and Hour Division (WHD) - U.S. Department of Labor | www.dol.gov
Related Articles
- Marriott Urges Hotel Guests to Tip Housekeepers | time.com
- 15 Things You Didn't Know About Tipping | time.com
- 15 Things You Didn't Know About Tipping | time.com
- 37. Traveling at Home and Abroad. Post, Emily. 1922. Etiquette www.bartleby.com
- Tipping the scales | nypost.com
- Ridesharing: An Etiquette Guide for Fellow Millennials | Brittany Hunter | fee.org
- Why Be Nice to Your Cab Driver? | Jeffrey A. Tucker | fee.org
- Tip with Cash, Free the World | Peter Kallman | fee.org
- The Social Value of Manners | Henry Hazlitt | fee.org
- Free Markets Refine Good Manners | Richard M. Ebeling | fee.org