Tipping and the nation's tax burden: A cross-country study

Z. Schwartz, E. Cohen

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


This article revisits the topic of cross-country differences in the number of tipped service-occupations. Taking a different approach, the study explores the relevance of three tax related economic processes: tax evasion, the crowding-out mechanism and the disposable income effect. The empirical test shows that the higher the tax burden, the lower the number of tipped occupations; a finding which supports the disposable income hypothesis and rejects the tax evasion one. The crowding out hypothesis is also rejected indicating that generosity might not be a valid explanation for tipping as previously suggested by some scholars.

Original languageEnglish
Pages (from-to)135-147
Number of pages13
Issue number2
StatePublished - 1 Jan 1999
Externally publishedYes


  • Disposable income
  • Economics
  • Tax
  • Tipping

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Earth-Surface Processes


Dive into the research topics of 'Tipping and the nation's tax burden: A cross-country study'. Together they form a unique fingerprint.

Cite this