Jun 28, 2005

"Racial Disparities in Taxicab Tipping" [LINK]

Economists Ian Ayres, Fredrick E. Vars, and Nasser Zakariya published a paper concluding that African-American passengers tipped approximately one-half the amount of white passengers, and were 3.7 times more likely to leave no tip. Also, African-American cab drivers were tipped approximately one-third less than white cab drivers, a form of discrimination in which African-American passengers participate. They conclude that eliminating the practice of tipping (by including the cost in the fare) would decrease racial discrimination.

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