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Dan F's avatar

Regarding the first point, a personal story: a relative of mine is an engineer-researcher. He goes to conferences, and those things can get pompous. Our family noted it, and he let slip that in certain societies (or countries, I overhead this and don't know the context), having to deal with maths and technical things, even if for very good pay, is considered low status. The way I understood it, pay comes second in respectability to amount of work (not) done.

Another observation I have is that tipping isn't completely absent in Europe. It is true that you won't be prodded for it, especially if you're not a tourist, but it won't be seen as alien even in places with few tourists. I remember my father always leaving a tip at restaurants, though that was long ago. Tipping might have become less common. It usually consisted in a few coins left on the table, so the waiter wouldn't get a chance to refuse. This is still impracticable here when paying electronically.

Another personal tale: A relative of mine was a doctor. In villages and towns this is very prestigious. Nevertheless, it was common for patients to give gifts to doctors. I find it difficult to see this as a status transaction, it looks more like a bribe, which you'd expect if doctors are scarce (and there is an a system of roundabout price controls in the form of a national health service). But it could be.

It's difficult to pin down the explanation for tipping on one single cause. I feel that there are multiple variables at play, and multiple causes can blend with one another. Because the US have lower taxes, there is more disposable income, for example. The supply of restaurants and waiters could also do it (too few waiters makes their attention scares). In a small town, people know each other, so people are more careful with their reputation (the US is large but could have been sparse; also, migrants form cliques).

Another theory I've held is that tips could be used to avoid taxes. But the state could respond by increasing taxes on the "principal", so that would be ineffective. But if that happens, it could be that it would be collectively difficult to return to a low taxes + no tip regime, so perhaps that means that there are two equilibria.

Charles Krug's avatar

This was surprisingly evident in China, where being Han is higher status than being e.g. Hmong, speaking "Chinese" (Mandarin) is higher status than speaking Shanghaiese, being a low-paid professor is higher status than owning a carting company, leading to my becoming aware of several situations where for example a Shanghaiese-speaking, non-Han billionaire owner of a large carting company being referred to as "Just a garbage man," as he got into his Fererri with his high-end mistress.

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