Black-White Differences in Tipping of Various Service Providers

Abstract

Data from a national telephone survey revealed four general patterns in the tipping behaviors of Blacks and Whites. First, Blacks appear more likely than Whites to stiff commonly encountered service providers, but not less commonly encountered ones. Second, Blacks appear more likely than Whites to leave flat tip amounts to service providers who are commonly tipped a percentage of the bill, but not to service providers who are more rarely tipped a percentage of the bill. Third, black percentage tippers leave a smaller average percentage of the bill than white percentage tippers across many service contexts. Finally, black flat tippers leave larger average dollar tips than white flat tippers across many service contexts. The theoretical and practical implications of these findings are briefly discussed.