State Differences in Tipping Attitudes and Behavior: Attributable to State Differences in Tipping Motivations?

Abstract

Consumers around the world give away billions of dollars annually in the form of voluntary payments (aka, tips) to service workers who have served them. This widespread and important economic activity varies across geographic areas within nations, but that geographic variability has been under-studied. This paper seeks to answer the question: “Are state differences in tipping attitudes and behavior attributable to state differences in motivations for tipping?” To that end, new measures of average tipping attitudes and motives in each of the states of the United States are developed, and their relationships with state tipping behaviors, as well as other theoretically relevant state-level measures, are tested. Results suggest meaningful and reliable state differences in attitudes toward and motivations for tipping, and that the latter differences underlie some, but not all, state differences in tipping behavior.