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How tipping expanded from restaurants to every transaction. The iPad flip, tip creep, and the economic research showing tipping is a terrible compensation system that produces racial and gender discrimination.
This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.
Canon
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Planet Money: the iPad flip (where the cashier turns the screen toward you showing 18%/20%/25% tip options) exploits social pressure to extract tips in contexts where tipping never existed before.
Highlights
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Tipping is a discriminatory compensation system that research consistently shows harms minorities and women
Planet Money: studies show that tips correlate more strongly with server attractiveness, race, and gender than with service quality. Blonde white women receive the highest tips; Black men receive the lowest — for identical service.Was this useful?