Do you tip? Tell us how much

Research on tipping norms in beauty salons is limited to behavioral economics. This study examines tipping by analyzing both extensive and intensive margins among 1,361 participants using a cross-sectional survey methodology. Findings reveal that clients' willingness and ability to tip are influenced by service quality, the desire to maintain a social image, expected returns from repeat customers, and demographic factors such as religion, education, and income. Additionally, external shocks, particularly the COVID-19 pandemic, significantly impact tipping behavior. Variables like monthly income, client gender, job loss due to the pandemic, and religious beliefs notably affect the amount clients tip. These factors not only shape the financial capacity to tip but also influence the social dynamics and expectations surrounding gratuity in beauty salons, highlighting the interplay between economic conditions and individual behaviors in the context of tipping.