Black–White Earnings Gap among Restaurant Servers: A Replication, Extension, and Exploration of Consumer Racial Discrimination in Tipping

Abstract

There is a rich history of social science research centering on racial inequalities that continue to be observed across various markets (e.g., labor, housing, and credit markets) and social milieus. Existing research on racial discrimination in consumer markets is, however, relatively scarce and that which has been done has disproportionately focused on consumers as the victims of race-based mistreatment. As such, we know relatively little about how consumers contribute to inequalities in their roles as perpetrators of racial discrimination. In response, in this article, we elaborate on a line of research that is only in its infancy stages of development and yet is ripe with opportunities to advance the literature on consumer racial discrimination and racial earnings inequities among tipdependent employees in the United States. Specifically, we analyze data derived from an exit survey of restaurant consumers (N = 394) in an attempt to replicate, extend, and further explore the recently documented effect of service providers' race on restaurant consumers' tipping decisions. Our results indicate that both white and black restaurant customers discriminate against black servers by tipping them less than their white co-workers. Importantly, we find no evidence that this black tip penalty is the result of inter-racial differences in service skills possessed by black and white servers. We conclude by delineating directions for future research in this neglected but salient area of study.

A meta‐analytic review of tipping compensation practices: An agency theory perspective

“…Finally, consistent with past research (Brewster, ; Brewster & Lynn, ; Brewster et al., ), we found demographic differences in the amount that servers are tipped. Hence, this study contributes to the notion that discrimination is possible in tipping practices.…”

“…Third, we explored possible explanations for the small to moderate relation between tipping and service quality. Therefore, individual differences in tipping may exist based on age, race, gender, and a myriad of other variables (Brewster & Lynn, ; Brewster & Mallinson, ; Lynn & Thomas‐Haysbert, ; Parrett, ). Indeed, our findings provided evidence that some demographic differences of customers and servers affect the percentage of a bill that is tipped.…”

“…If this is the case, the potential for unfairness is likely to exist (Ayres, Vars, & Zakariya, ; Brewster & Lynn, ). Controlling for as many factors as possible, research has found that ethnic and/or racial minority servers receive fewer tips than their White counterparts, regardless of the demographics (e.g., race) of the customers (Ayres et al., ; Brewster & Lynn, ; Lynn et al., ). Scholars suggest such group differences could be the result of implicit racial or gender attitudes that people hold about particular groups or perhaps even unconscious biases (Brewster & Lynn, ; Lynn & Sturman, ; Lynn et al., ).…”

“…In addition to characteristics of the customer, demographic features of the server, such as ethnicity or race, could be an important factor for the instrumentality relationship as well (Figure 1, box 7). If this is the case, the potential for unfairness is likely to exist (Ayres, Vars, & Zakariya, 2005;Brewster & Lynn, 2014). Controlling for as many factors as possible, research has found that ethnic and/or racial minority servers receive fewer tips than their White counterparts, regardless of the demographics (e.g., race) of the customers (Ayres et al, 2005;Brewster & Lynn, 2014;Lynn et al, 2008).…”

Effects of misleading media coverage on public health crisis: a case of the 2019 novel coronavirus outbreak in China

“…A large body of work has focused on restaurant settings, namely in terms of employment, tipping behaviour, and racial profiling of customers (e.g. Brewster, 2012;Brewster & Lynn, 2014;Dirks & Rice, 2004).…”