Where does the concept of 'tipping' come from (i.e. bartenders, delivery people, servers, etc) and why does it only exist in certain countries?

by ShlomoIsGod
vonadler

I can answer on tipping in Sweden which used to exist for a long time.

In Sweden, tipping died off at many service establishments and now only exists in dining (ie where you make an order and are served it at the table). However, tip jars have started to appear again, as an influence from the USA at places where you order at the counter.

Tipping began as "dricks" (which roughly translates as "will be drinked") where a patron would offer extra money for service, and the serviceprovider would use it to buy a shot of brännvin (vodka) and drink to the health of the patron.

Tipping was common in all service industries and usually paid by more affluent persons, who were the ones who could afford paid services in the 19th century. Most people were peasants and often bartered or traded services - you cut my hair, I chop some wood for you and so on. Tipping was often seen as a form of charity. In lutheran Sweden, begging was frowned upon, but poor people who performed services could be paid over the stated price as a charity - for example shoe shining boys or children on the countryside that opened gates for passing carriages.

The latter is the subject of a famous painting in Sweden, where children fight for such a tip.

Since 1938 Sweden has a general agreement between the unions and the employers - wages are set in central agreements, and Sweden thus has very few labour laws. There are no minimum wage laws in Sweden. Instead the unions enforce the collective agrements by putting companies that do not abide by them under blockades.

During the 40s, 50s and 60s the unions fought hard for livable wages in all service industry jobs and skatteverket (Swedish IRS) removed pre-paid taxes for tips in service industry jobs such as taxi driving (which forced people to declare their tips and tax them to get back their pre-paid taxes if eligeble). From the 1960s people in the service industry make a livable wage and tipping has slowly died out, except in table-served dining, where a few percent (usually rounding a bill up) is still common, but not required.

Thus, tipping started as a form of charity and generally ended because the unions negotiated a minimum wage in the 60s that was a livable wage without tips and the Swedish IRS removing the mandatory withholding for tips around the same time tipping dissapeared.