Why we tip more than we used to

Shea Huffman Oct 8, 2014

Tipping can be a contentious issue in the U.S., especially in light of the debate over raising the minimum wage. Whether tipped employees should even be paid minimum wage is still a question up for debate in most states.

With the hardships of low-wage workers on their mind, consumers might be compelled to increase the percentage of their gratuity in instances like dining in a restaurant. Concerns over low wages might be the reason why, percentage-wise, we tip more compared to past decades.

Or is it some other economic reason tied to the rise or fall of food prices? Does the average diner even pay attention to those factors?

Looking at historical data on the U.S., there does seem to be a general rise in how big of a percentage people tip, says Mike Lynn, a marketing professor and expert in tipping behavior at Cornell University School of Hotel Administration.

“If you look at etiquette books, going back pretty far, etiquette books were recommending 15 percent tips,” Lynn says, “But there was a survey by Leo Crespi in Public Opinion Quarterly in 1947, and what was clear was that people were tipping 10 percent on average in restaurants.”

Other etiquette books reinforced the 10 percent norm for tipping as well.

An excerpt from “The itching palm; a study of the habit of tipping in America,” an anti-tipping etiquette book published in 1916.

The rise of tipping to a more 15 percent standard may have more to do with how the tipper wants to be perceived, Lynn says.

“My theory is that some people tip as a positional good. To get ahead of others,” Lynn says, “They want better service than other people get. They want the server to look up to them and respect them more. They tip to get out ahead of others, and once some people do that, it puts pressure on everybody else.”

Lynn cautions that his theory is based more on his own observations rather than hard evidence on tipping, which is difficult to come by, but he does say there is evidence that tipping is more common in countries that are more status-oriented.

Lynn also says we shouldn’t totally discount people who say they do tip to rectify what they see as unfair wage practices for servers, in which they are paid below the state minimum wage. He also points out that in states like California, where tipped employees do make at least the state minimum wage, tipping rates aren’t significantly lower than in states with different policies.

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