Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6378 USDL 98-295 For release: 10:00 A.M. EDT Media contact: 606-5902 Thursday, July 16, 1998 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: SECOND QUARTER 1998 Median weekly earnings of the nation's 95.5 million full-time wage and salary workers were $515 in the second quarter of 1998, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 3.2 percent higher than a year earlier, compared with a gain of 1.6 percent in the Consumer Price Index for All Urban Consumers (CPI-U) over the same period. Data on usual earnings are collected as part of the Current Population Survey, a nationwide sample survey of households in which respondents are asked, among other things, how much each wage and salary worker usually earns. For further information, see the explanatory note. --Women who usually worked full time had median earnings of $446 a week, or 75.6 percent of the $590 median for men. The female-to-male earnings ratios were higher among blacks (82.8 percent) and Hispanics (87.4 percent) than among whites (75.6 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $471 per week, 77.7 percent of the median for white men ($606). The difference was much less among women, as black women's median earnings ($390) were 85.2 percent of those for their white counterparts ($458). Overall, median earnings of Hispanics who worked full time ($365) were lower than those of blacks ($420) and whites ($532). (See table 1.) --The highest median weekly earnings for full-time workers were $709 for men in the 45- to 54-year-age group; second highest was the median for 55- to 64- year-old men at $677. Among women, the highest-earning age group also was 45- to 54-year olds, who had a median of $503, followed by 35- to 44-year-olds, with a median of $485. (See table 2.) --Among the major occupational groups, persons employed full time in managerial and professional specialty occupations had the highest median weekly earnings--$888 for men and $640 for women--while men and women in farm jobs earned the least. (See table 3.) --Full-time workers age 25 and over with less than a high school diploma had median weekly earnings of $339, compared with $474 for high school graduates (no college) and $795 for college graduates. Among college graduates with advanced degrees (professional or master's degree and above), the highest 10 percent of male workers earned $2,083 or more, compared with $1,509 or more for their female counterparts. (See table 4.) Explanatory Note The estimates in this release were obtained from the Current Population Survey (CPS), which provides the basic information on the labor force, employment, and unemployment. The survey is conducted monthly for the Bureau of Labor Statistics by the Bureau of the Census from a scientifically selected national sample of about 50,000 households, with coverage in all 50 states and the District of Columbia. The earnings data are collected from one-quarter of the CPS monthly sample and are limited to wages and salaries. The data, therefore, exclude self-employment income. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-606-5897; TDD message referral phone number: 1-800-326-2577. Reliability Statistics based on the CPS are subject to both sampling and nonsam- pling error. When a sample, rather than the entire population, is surveyed, there is a chance that the sample estimates may differ from the "true" population values they represent. The exact difference, or sampling error, varies depending on the particular sample selected, and this variability is measured by the standard error of the estimate. There is about a 90-percent chance, or level of confidence, that an estimate based on a sample will differ by no more than 1.6 standard errors from the "true" population value because of sampling error. BLS analyses are generally conducted at the 90-percent level of confidence. The CPS data also are affected by nonsampling error. Nonsampling error can occur for many reasons, including the failure to sample a segment of the population, inability to obtain information for all respondents in the sample, inability or unwillingness of respondents to provide correct information, and errors made in the collection or processing of the data. For a full discussion of the reliability of data from the CPS and information on estimating standard errors, see the "Explanatory Notes and Estimates of Error" section of the February 1994 and subsequent issues of Employment and Earnings. Definitions The principal definitions used in connection with the earnings series are described briefly below. Usual weekly earnings. Data represent earnings before taxes and other deductions and include any overtime pay, commissions, or tips usually received (at the main job in the case of multiple jobholders.) Prior to 1994, respondents were asked how much they usually earned per week. Since January 1994, respondents have been asked to identify the easiest way for them to report earnings (hourly, weekly, biweekly, twice monthly, monthly, annually, other) and how much they usually earn in the reported time period. Earnings reported on a basis other than weekly are converted to a weekly equivalent. The term "usual" is as perceived by the respondent. If the respondent asks for a definition of usual, interviewers are instructed to define the term as more than half the weeks worked during the past 4 or 5 months. Medians (and other quantiles) of weekly earnings. The median (or upper limit of the second quartile) is the amount which divides a given earnings distribution into two equal groups, one having earnings above the median and the other having earnings below the median. Ten percent of a given distribution have earnings below the upper limit of the first decile (90 percent have higher earnings); 25 percent have earnings below the upper limit of the first quartile (75 percent have higher earnings); 75 percent have earnings below the upper limit of the third quartile (25 percent have higher earnings); and 90 percent have earnings below the upper limit of the ninth decile (10 percent have higher earnings). The estimating procedure places each reported or calculated weekly earnings value into $50-wide intervals which are centered around multiples of $50. The actual value is estimated through the linear interpolation of the interval in which the quantile boundary lies. Over-the-year changes in the medians (and other quantile boundaries) for specific groups may not necessarily be consistent with the movements estimated for the overall quantile boundary. The most common reasons for this possible anomaly are: (1) There could be a change in the relative weights of the subgroups. For example, the medians of both 16-to-24 year olds and those 25 years and over may rise; but if the lower-earning 16-to- 24 group accounts for a greatly increased share of the total, the overall median could actually fall. (2) There could be a large change in the shape of the distribution of reported earnings, particularly near a quantile boundary. This could be caused by survey observations that are clustered at rounded values, e.g., $250, $300, $400. An estimate lying in a $50-wide centered interval containing such a cluster or "spike" tends to change more slowly than one in other intervals. Wage and salary workers. Workers who receive wages, salaries, commissions, tips, payment in kind, or piece rates. The group includes employees in both the private and public sectors but, for the purposes of the earnings series, excludes all self-employed persons, regardless of whether or not their businesses are incorporated. - 2 - Full-time workers. Workers who usually work 35 hours or more per week at their sole or principal job. Part-time workers. Workers who usually work fewer than 35 hours per week at their sole or principal job. Constant dollars. The Consumer Price Index for All Urban Consumers (CPI-U) is used to convert current dollars to constant (1982) dollars. Hispanic origin. Refers to persons who are of Mexican, Puerto Rican, Cuban, Central or South American, or other Hispanic origin or descent. Persons of Hispanic origin may be of any race; hence, they are included in the numbers for the white and black populations. Table 1. Median usual weekly earnings of full-time wage and salary workers by selected characteristics, quarterly averages, not seasonally adjusted Number of workers Median weekly earnings (in thousands) Characteristic In current dollars In constant (1982) dollars II II 1997 1998 II II II II 1997 1998 1997 1998 SEX AND AGE Total, 16 years and over.................................. 93,387 95,548 $499 $515 $301 $306 Men, 16 years and over................................. 53,329 54,625 572 590 344 350 16 to 24 years....................................... 6,321 6,409 316 335 190 199 25 years and over.................................... 47,008 48,216 609 627 367 372 Women, 16 years and over............................... 40,058 40,923 428 446 258 264 16 to 24 years....................................... 4,511 4,866 289 305 174 181 25 years and over.................................... 35,548 36,057 457 474 275 281 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 77,856 79,361 515 532 310 315 Men.................................................. 45,493 46,237 589 606 355 359 Women................................................ 32,363 33,124 443 458 267 271 Black.................................................. 11,338 11,827 397 420 239 249 Men.................................................. 5,490 5,890 424 471 255 279 Women................................................ 5,847 5,937 379 390 228 231 Hispanic origin........................................ 9,789 10,552 352 365 212 216 Men.................................................. 6,462 6,793 368 381 222 226 Women................................................ 3,327 3,759 320 333 193 198 NOTE: Detail for the above race and Hispanic-origin groups will not sum to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups. Beginning in January 1998, data reflect new composite estimation procedures and revised population controls used in the household survey. Table 2. Median usual weekly earnings of full-time wage and salary workers by age, race, Hispanic origin, and sex, second quarter 1998 averages, not seasonally adjusted Total Men Women Age, race, and Hispanic origin Number Number Number of Median of Median of Median workers weekly workers weekly workers weekly (in earnings (in earnings (in earnings thousands) thousands) thousands) TOTAL 16 years and over......................................... 95,548 $515 54,625 $590 40,923 $446 16 to 24 years.......................................... 11,275 320 6,409 335 4,866 305 16 to 19 years........................................ 2,215 268 1,285 281 930 248 20 to 24 years........................................ 9,061 341 5,124 360 3,936 317 25 years and over....................................... 84,273 560 48,216 627 36,057 474 25 to 54 years........................................ 74,458 559 42,588 624 31,870 477 25 to 34 years...................................... 25,633 499 14,939 538 10,694 449 35 to 44 years...................................... 27,966 590 16,236 667 11,731 485 45 to 54 years...................................... 20,859 605 11,413 709 9,446 503 55 years and over..................................... 9,815 568 5,628 657 4,187 446 55 to 64 years...................................... 8,629 585 4,903 677 3,726 460 65 years and over................................... 1,186 392 725 424 460 349 White 16 years and over......................................... 79,361 532 46,237 606 33,124 458 16 to 24 years.......................................... 9,513 322 5,509 336 4,004 309 25 years and over....................................... 69,848 581 40,729 650 29,120 485 25 to 54 years........................................ 61,401 581 35,869 646 25,532 489 55 years and over..................................... 8,448 581 4,860 682 3,588 446 Black 16 years and over......................................... 11,827 420 5,890 471 5,937 390 16 to 24 years.......................................... 1,409 298 702 319 706 271 25 years and over....................................... 10,419 449 5,188 494 5,231 409 25 to 54 years........................................ 9,425 448 4,654 495 4,771 407 55 years and over..................................... 994 458 534 484 460 439 Hispanic origin 16 years and over......................................... 10,552 365 6,793 381 3,759 333 16 to 24 years.......................................... 1,883 298 1,312 305 570 281 25 years and over....................................... 8,669 390 5,480 410 3,188 352 25 to 54 years........................................ 7,976 390 5,064 411 2,913 350 55 years and over..................................... 692 386 417 402 276 370 NOTE: Detail for the above race and Hispanic-origin groups will not sum to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups. Beginning in January 1998, data reflect new composite estimation procedures and revised population controls used in the household survey. Table 3. Median usual weekly earnings of full-time wage and salary workers by occupation and sex, quarterly averages, not seasonally adjusted Number of workers Median weekly earnings (in thousands) Occupation and sex II II II II 1997 1998 1997 1998 TOTAL Managerial and professional specialty.................... 28,160 29,076 $727 $746 Executive, administrative, and managerial.............. 13,978 14,079 694 748 Professional specialty................................. 14,183 14,997 748 745 Technical, sales, and administrative support............. 26,540 27,404 449 473 Technicians and related support........................ 3,443 3,666 567 602 Sales occupations...................................... 9,340 9,586 466 494 Administrative support, including clerical............. 13,757 14,151 418 436 Service occupations...................................... 10,039 10,421 311 330 Private household...................................... 338 352 214 229 Protective service..................................... 1,915 2,082 510 603 Service, except private household and protective....... 7,786 7,987 295 312 Precision production, craft, and repair.................. 11,671 11,740 545 572 Mechanics and repairers................................ 3,970 4,070 568 596 Construction trades.................................... 4,057 4,150 541 543 Other precision production, craft, and repair.......... 3,644 3,520 526 562 Operators, fabricators, and laborers..................... 15,230 15,194 402 412 Machine operators, assemblers, and inspectors.......... 7,186 7,056 385 401 Transportation and material moving occupations......... 4,522 4,338 502 511 Handlers, equipment cleaners, helpers, and laborers.... 3,521 3,800 340 348 Farming, forestry, and fishing........................... 1,748 1,714 291 302 Men Managerial and professional specialty.................... 14,131 14,863 862 888 Executive, administrative, and managerial.............. 7,339 7,577 850 903 Professional specialty................................. 6,792 7,286 878 876 Technical, sales, and administrative support............. 10,278 10,405 589 603 Technicians and related support........................ 1,806 1,893 680 686 Sales occupations...................................... 5,167 5,245 592 625 Administrative support, including clerical............. 3,306 3,266 530 507 Service occupations...................................... 5,012 5,222 366 392 Private household...................................... 19 19 (1) (1) Protective service..................................... 1,604 1,784 $527 $623 Service, except private household and protective....... 3,388 3,419 314 336 Precision production, craft, and repair.................. 10,675 10,894 562 586 Mechanics and repairers................................ 3,789 3,918 571 601 Construction trades.................................... 3,991 4,116 541 543 Other precision production, craft, and repair.......... 2,895 2,860 582 609 Operators, fabricators, and laborers..................... 11,674 11,744 438 450 Machine operators, assemblers, and inspectors.......... 4,604 4,499 $437 $460 Transportation and material moving occupations......... 4,198 4,000 511 519 Handlers, equipment cleaners, helpers, and laborers.... 2,872 3,245 357 359 Farming, forestry, and fishing........................... 1,558 1,498 296 306 Women Managerial and professional specialty.................... 14,029 14,212 622 640 Executive, administrative, and managerial.............. 6,638 6,501 599 613 Professional specialty................................. 7,391 7,711 653 660 Technical, sales, and administrative support............. 16,261 16,999 398 417 Technicians and related support........................ 1,637 1,773 484 506 Sales occupations...................................... 4,173 4,341 348 365 Administrative support, including clerical............. 10,451 10,885 397 418 Service occupations...................................... 5,027 5,199 283 300 Private household...................................... 319 333 212 225 Protective service..................................... 311 298 428 416 Service, except private household and protective....... 4,398 4,569 281 299 Precision production, craft, and repair.................. 996 847 380 389 Mechanics and repairers................................ 180 152 504 473 Construction trades.................................... 66 34 (1) (1) Other precision production, craft, and repair.......... 749 660 $352 $371 Operators, fabricators, and laborers..................... 3,555 3,450 315 324 Machine operators, assemblers, and inspectors.......... 2,582 2,558 315 327 Transportation and material moving occupations......... 325 339 361 393 Handlers, equipment cleaners, helpers, and laborers.... 649 554 301 294 Farming, forestry, and fishing........................... 189 215 256 266 1 Data not shown where base is less than 100,000. Beginning in January 1998, data reflect new composite estimation procedures and revised population controls used in the household survey. Table 4. Quartiles and selected deciles of usual weekly earnings of full-time wage and salary workers by selected characteristics, second quarter 1998 averages, not seasonally adjusted Number Upper limit of: of Characteristic workers (in First First Second Third Ninth thousands) decile quartile quartile quartile decile (median) SEX, RACE, AND HISPANIC ORIGIN Total, 16 years and over.................................. 95,548 $255 $344 $515 $773 $1,141 Men..................................................... 54,625 279 385 590 879 1,268 Women................................................... 40,923 234 310 446 647 928 White................................................... 79,361 260 354 532 803 1,167 Men................................................... 46,237 284 395 606 907 1,322 Women................................................. 33,124 238 314 458 662 946 Black................................................... 11,827 224 301 420 617 849 Men................................................... 5,890 238 319 471 671 931 Women................................................. 5,937 212 286 390 572 762 Hispanic................................................ 10,552 217 273 365 559 825 Men................................................... 6,793 229 285 381 587 869 Women................................................. 3,759 200 252 333 503 731 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 84,273 274 374 560 820 1,175 Less than a high school diploma....................... 8,759 203 258 339 488 678 High school graduates, no college..................... 27,350 259 337 474 655 884 Some college or associate degree...................... 22,734 291 389 549 768 1,037 College graduates, total.............................. 25,430 393 577 795 1,156 1,598 Bachelor's degree only.............................. 17,245 376 528 740 1,058 1,463 Advanced degree..................................... 8,185 478 658 950 1,348 1,888 Men, 25 years and over................................ 48,216 298 421 627 925 1,335 Less than a high school diploma..................... 5,961 226 282 381 542 738 High school graduates, no college................... 15,313 295 394 552 753 993 Some college or associate degree.................... 12,468 330 463 637 887 1,169 College graduates, total............................ 14,474 424 621 911 1,329 1,822 Bachelor's degree only............................ 9,729 405 589 839 1,225 1,662 Advanced degree................................... 4,745 505 729 1,100 1,474 2,083 Women, 25 years and over.............................. 36,057 246 327 474 676 964 Less than a high school diploma..................... 2,798 185 225 284 370 486 High school graduates, no college................... 12,037 231 297 392 519 681 Some college or associate degree.................... 10,266 266 339 465 627 839 College graduates, total............................ 10,956 373 513 690 962 1,271 Bachelor's degree only............................ 7,516 $345 $472 $646 $886 $1,172 Advanced degree................................... 3,440 449 612 832 1,107 1,509 NOTE: Ten percent of all full-time wage and salary workers earn less than the upper limit of the first decile; 25 percent earn less than the upper limit of the first quartile; 50 percent earn less than the upper limit of the second quartile, or median; 75 percent earn less than the upper limit of the third quartile; and 90 percent earn less than the upper limit of the ninth decile. Detail for the above race and Hispanic-origin groups will not sum to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups. Beginning in January 1998, data reflect new composite estimation procedures and revised population controls used in the household survey. Table 5. Median usual weekly earnings of part-time wage and salary workers by selected characteristics, quarterly averages, not seasonally adjusted Number of workers Median weekly earnings (in thousands) Age, race, and Hispanic origin II II II II 1997 1998 1997 1998 SEX AND AGE Total, 16 years and over.................................. 20,853 20,832 $147 $156 Men, 16 years and over................................. 6,584 6,367 138 146 16 to 24 years....................................... 3,461 3,607 113 122 25 years and over.................................... 3,123 2,759 180 192 Women, 16 years and over............................... 14,268 14,466 151 160 16 to 24 years....................................... 4,365 4,355 111 115 25 years and over.................................... 9,903 10,111 173 190 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 18,090 17,813 148 156 Men.................................................. 5,541 5,386 136 145 Women................................................ 12,549 12,427 153 162 Black.................................................. 1,883 2,035 138 152 Men.................................................. 677 618 143 153 Women................................................ 1,206 1,417 136 151 Hispanic origin........................................ 1,999 1,936 142 145 Men.................................................. 723 637 159 148 Women................................................ 1,276 1,299 132 144 NOTE: Detail for the above race and Hispanic-origin groups will not sum to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups. Beginning in January 1998, data reflect new composite estimation procedures and revised population controls used in the household survey.