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The Economics of Tipping

The History of Tipping

Tipping came to America from Europe in the 19th century and was criticised as un-democratic before becoming standard.

Not always accepted.

Origins

Tipping was common among European aristocrats and spread to American travellers.

Backlash

Early American critics called it undemocratic and bribery.

Laws

Some states banned tipping in the early 1900s, but the bans faded.

Norm

Tipping became a fixture in restaurants and hospitality, especially in the US.

An old debate

A 1900s writer denounced tipping as a slavish custom.

Assuming tipping has always been standard

It was contested.

Key takeaways
  • Tipping came from Europe.
  • Early critics opposed it.
  • Bans were tried.
  • It became a norm in the US.
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