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Economic Behavior in Crisis: Taxi Rides and Tipping in New York City During COVID-19
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Chikish, Iuliia
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Fall 2023
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2023
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In 2020 COVID-19 disrupted the world's economy. Many lives were affected as well as jobs and different industries. The tipping industry being one of them. Tipping is considered an essential part of a person's wage. In this paper I analyze how tipping behavior of taxi riders in New York City changed after the pandemic began in 2020. I was able to collect over 200,000,000 observations of trip level data from the New York taxi and limousine commission. My findings suggest that both green and yellow cabs have a decrease in probability of tipping the driver at the start of the pandemic. For yellow cabs the probability of tipping returned to pre-pandemic levels after October 2020. And for green cabs returned and exceeded the pre-Covid level in October 2020.
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