Race Differences in Tipping: Testing the Role of Norm Familiarity

Abstract

On average, blacks tip less than whites in the United States. As a result, many servers dislike waiting on black tables and deliver inferior service to those blacks seated in their sections. Furthermore, this race difference makes it difficult to attract and retain waitstaff in predominately black neighborhoods, which makes such neighborhoods less attractive places for corporations to locate full-service restaurants. To address these issues, race differences in tipping need to be sizably reduced, which requires an understanding of their underlying causes. This study tests and supports the role of norm familiarity in producing race differences in tipping by demonstrating that norm awareness mediates those differences in tipping and that race does not moderate the effects of norm awareness on tipping. These results support the idea that race differences in tipping can be sizably reduced by educating blacks about appropriate tipping norms, so restaurant managers as well as major industry organizations are encouraged to engage in such educational campaigns.