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Day Quote by Stephen J. Dubner

“As everyone knows, tips constitute the bulk of a waiter's or waitress's income. But they are also optional, at least in theory. Does it really seem like a good idea to make someone's salary so susceptible to customers' whims on a given day - or whether any customers happen to show up at all?” quote by Stephen J. Dubner
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“As everyone knows, tips constitute the bulk of a waiter's or waitress's income. But they are also optional, at least in theory. Does it really seem like a good idea to make someone's salary so susceptible to customers' whims on a given day - or whether any customers happen to show up at all?”

Stephen J. Dubner

About This Quote

Source Book: Freakonomics, 2005

Relying on tips makes workers' earnings unpredictable and dependent on customer generosity.

In simple terms: Tips cause income volatility.

Key Takeaway

Consider stable wages.

Themes

economics labor fairness

Mood

critical thoughtful

Type

analytical policy

When to use this quote

  • restaurant industry
  • gig economy
  • service jobs
  • policy debate

Key Concepts

incentive structures income stability

Questions to Reflect On

  • Should income be based on customer discretion?
  • How can fairness be ensured?
A Different Perspective

Tips can be manipulated or withheld, harming workers.

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