Why We Tip
The History Behind Our Tipping Culture
Tipping has always been one of those curious behaviours that seem be a bit weird from afar.
Why do we voluntarily pay more than the original price?
Why do we tip even when we’ll never see the worker again?
How do tips vary across countries and cultures?
— The History Of Our Tipping Culture
At first glance, tipping looks outrageous, but behind every tip lies a fascinating mix of psychology, culture, and economics! (Not to mention the toll technology has had on it!)
Historically, tipping began in medieval Europe, where the wealthy would offer extra money to servants or workers as a token of their appreciation. This display of generosity was a symbol of high status.
As a practice, tipping has its origins in Europe of the Middle Ages (a period which lasted from about 500 to 1,500 A.D.) when the wealthy would give people in lower classes extra money for their services, according to Kerry Segrave's "Tipping: An American Social History of Gratuities.
(CNBC)
By the 1800s, tipping had made its way to the United States. Strangely, it became more common after slavery ended.
Many businesses didn’t want to pay wages to newly freed Black workers. Instead, they encouraged tipping so customers would cover their pay. Over time, tipping became normal in many service jobs. Fast forward to now, it has gone even further. Whether you’re ordering food, taking a taxi, or buying coffee, you’re often asked to leave a tip through a screen.
Tipping also shifts the responsibility of fair pay from employers to customers. In countries like the U.S., businesses can legally pay tipped workers less than the minimum wage. That means workers like waiters or delivery drivers rely mostly on tips to survive. This makes their income unstable and unpredictable. It helps businesses save money, but it puts workers at risk.
Tipped workers have lower wages than non-tipped workers
Tipped workers in the South earn a median wage of $15.13. The median hourly wage for tipped workers is $8.50 less than the typical worker's wage ($23.64) in the South in 2023 (BLS 2023).
(Economic Policy Institute)
There’s another problem: tipping can lead to discrimination. Studies show that white servers often get higher tips than non-white ones, even when they do the same job. Women might get better tips than men, but they sometimes feel pressured to act a certain way or accept bad behaviour from customers. In these cases, tipping becomes a form of control rather than a reward.
—Tipping Culture Around The World
Tipping customs are different around the world. In places like Japan and South Korea, tipping is seen as rude, great service is just part of the job. In many European countries, tipping is small or already included in the bill. This shows that tipping isn’t necessary everywhere, it’s just a cultural habit. Some people see it as a way to say thanks, while others find it awkward or unnecessary.
However, people usually tip because they feel they should, not because they carefully judged the service. We tip out of guilt, habit, or fear of looking cheap, especially when someone is watching. Digital systems make it even harder to say no. Have you ever tipped at a self-checkout just because the screen asked? That’s not gratitude, that’s guilt designed into the technology.
— Conclusion
Tipping is more than a way to say “good job.” It’s a social habit with deep economic and emotional effects. It might feel nice to leave a tip, but we should also ask:
“Is this really the best way to pay people for their work?”
Next time you see that tip screen, take a second to think, not just about how much to give, but why you’re giving it.
**DISCLAIMER: THIS POST IS BASED ONLY FOR EDUCATIONAL PURPOSES AND IS NOT MEANT TO BE RACIST IN ANY WAY!**
WORK CITED
CNBC. "How Tipping Came to the U.S." CNBC, 30 Nov. 2023, https://www.cnbc.com/2023/11/30/how-tipping-came-to-the-us.html.
Economic Policy Institute. "Tipping is a racist relic and a modern tool of economic oppression in the South." Economic Policy Institute, 2024, https://www.epi.org/publication/rooted-racism-tipping/.
In my experience, tipping is something that is left to the discretion of the customer, and seems to be confined to restaurants.
I don't think everybody tips, and I certainly can't afford to. However, for particularly attentive service, where the staff have gone out of their way to be accommodating, and they certainly deserve one.
What I do find offputting, is in certain American coffee shops where one has to pay by card and accept or decline a gratuity.
In my experience of over 60 years working, I have found American businesses to be the most hard nosed x
The US has a big tipping culture. That's why it works to a certain extent on Substack. Australia doesn't really have a tipping culture at all. We have a minimum wage for over 18s of $24.10 per hour.