Monday, January 24, 2022


 The Economist has an interesting story on tipping in today's economy. Tipping is common in the US, India and much of Africa but frowned upon throughout Europe, where a service harce is added in lieu of a tip, and Asia. Research shows that customers tip about the same, whether the service is good or poor. They also are a good way for the recipient to avoid taxes, as cash times are often not reported, although, as credit cards have become far more common, the tip paid on a credit card does get reported.

If you are a young female Uber driver, between ages of 21-25, and have a male customer, your tip will be roughly 8 times as large as if you were a young male driver with a male customer. The amount a male drive gets tips stays pretty flat the older they get ,while a female driver's tips drop significantly the older she is. Race comes into play when drivers get tipped, too, as black drivers get tipped about 7% less than white drivers do.

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