In my view, a drawback of tipping is that it's impossible to predict how much a job actually pays. This makes it harder for workers to compete for higher wages

In my view, a drawback of tipping is that it's impossible to predict how much a job actually pays. This makes it harder for workers to compete for higher wages by changing jobs. Thus it probably has the net effect of depressing overall earnings. Not knowing how much people get paid probably also frustrates collective bargaining. It also leaves the price / performance relationship up in the air for customers. They're tipping, but they don't know how the tips are being split. Between people tipping habitually, and not knowing where your tip is going, I'm not sure that "reward for good service" is a meaningful incentive. It may be as much a reward for quality management. Disclosure: Both of my kids are tipped workers. They both receive a split of the tips depending on what job they're doing. I also receive cash tip income as a musician, but it's not my main job.