Technical Contact: USDL: 07-1455 (202) 691-6199 NCSinfo@bls.gov Media Contact: FOR RELEASE: 10:00 A.M. EDT (202) 691-5902 WEDNESDAY, SEPTEMBER 26, 2007 Internet address: http://www.bls.gov/ncs/ocs/home.htm (This news release was reissued on Wednesday, May 26, 2010, to remove table asterisks that have incorrectly indicated statistically significant differences between some estimates. News release text references to statistical significance have also been removed. Pay relative estimates have not changed. For more information, see http://www.bls.gov/ncs.) OCCUPATIONAL PAY COMPARISONS AMONG METROPOLITAN AREAS, 2006 Average pay in the San Francisco metropolitan area was 19 percent above the national average in 2006, the highest among the 78 metropolitan areas studied by the National Compensation Survey (NCS), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. In contrast, pay was lowest in the Brownsville, Texas metropolitan area with a pay relative of 78, meaning Brownsville workers earned an average of 78 cents for every dollar earned by workers nationwide. Using data from the NCS, pay relatives--a means of assessing pay differences--are available for each of the 9 major occupational groups within 78 metropolitan areas, as well as averaged across all occupations for each area. (See table 1.) Table A below lists the five highest and five lowest paying metropolitan areas among those studied in the NCS. In addition, similar area-to-area comparisons have been calculated for all 78 areas and will soon be available on the BLS website at http://www.bls.gov/ncs/ocs/payrel.htm. Table A. Highest and lowest metropolitan area pay relative rankings (of 78 metropolitan areas surveyed) Rank Metropolitan Area Pay Relative 1. San Francisco-Oakland-San Jose, CA 119 2. New York-Northern New Jersey-Long Island, NY-NJ-CT-PA 114 3. Salinas, CA 113 4. Boston-Worcester-Lawrence, MA-NH-ME-CT 112 Hartford, CT 112 74. Corpus Christi, TX 87 Great Falls, MT 87 Johnstown, PA 87 Springfield, MO 87 78. Brownsville-Harlingen-San Benito, TX 78 A pay relative is a calculation of pay--wages, salaries, commissions, and production bonuses--for a given metropolitan area relative to the nation as a whole. The calculation controls for differences among areas in occupational composition, establishment and occupational characteristics, and the fact that data are collected for areas at different times during the year. Simple pay comparisons calculating the ratio of the average pay for an area versus the entire United States in percentage terms would not control for interarea differences in occupational composition and other factors, which may have an effect on pay relatives. More information on pay relative controls and calculations are available in the Technical Note. The pay relative in 2006 for workers in construction and extraction occupations in the San Francisco area was 122, meaning the pay in San Francisco for that occupational group averaged 22 percent more than the national average pay for that occupational group. By contrast, the pay relative for workers in construction and extraction occupations in the Brownsville, Texas area was 67, meaning pay for workers in those occupations averaged 33 percent less than the national average. The National Compensation Survey (NCS), introduced in 1997, collects earnings and other data on employee compensation covering over 800 detailed occupations in 152 metropolitan and nonmetropolitan areas. Average occupational earnings from the NCS are published annually for 78 metropolitan areas and for the United States as a whole. Beginning in 2006, the NCS implemented a number of significant survey changes including imputing for temporary non-response situations and benchmarking estimated employment. For more details on these changes, see the article at http://www.bls.gov/opub/cwc/cm20070122ar01p1.htm. Data users are cautioned not to use yearly differences in area and occupational pay group differences in pay relatives to infer changes in underlying economic conditions. Table 1. Pay relatives for major occupational groups in metropolitan areas, National Compensation Survey, June 2006 (Average pay nationally for all occupations and for each occupational group shown = 100.) Management, Metropolitan Area1 All business, occupations and financial United States......................... 100 100 Amarillo, TX.......................... 88 93 Anchorage, AK......................... 109 104 Atlanta, GA........................... 102 102 Augusta-Aiken, GA-SC.................. 94 89 Austin-San Marcos, TX................. 95 91 Birmingham, AL........................ 94 92 Bloomington, IN....................... 90 89 Boston-Worcester-Lawrence, MA-NH-ME-CT........................... 112 110 Brownsville-Harlingen-San Benito, TX.................................... 78 73 Buffalo-Niagara Falls, NY............. 100 91 Charleston-North Charleston, SC....... 93 98 Charlotte-Gastonia-Rock Hill, NC-SC... 101 99 Chicago-Gary-Kenosha, IL-IN-WI........ 108 104 Cincinnati-Hamilton, OH-KY-IN......... 98 93 Cleveland-Akron, OH................... 100 96 Columbus, OH.......................... 100 100 Corpus Christi, TX.................... 87 92 Dallas-Fort Worth, TX................. 98 100 Dayton-Springfield, OH................ 98 99 Denver-Boulder-Greeley, CO............ 102 99 Detroit-Ann Arbor-Flint, MI........... 106 97 Elkhart-Goshen, IN.................... 96 96 Fort Collins-Loveland, CO............. 100 94 Grand Rapids-Muskegon-Holland, MI..... 101 93 Great Falls, MT....................... 87 85 Greensboro-Winston Salem-High Point, NC.................................... 95 91 Greenville-Spartanburg-Anderson, SC... 94 95 Hartford, CT.......................... 112 108 Hickory-Morganton-Lenoir, NC.......... 95 89 Honolulu, HI.......................... 105 105 Houston-Galveston-Brazoria, TX........ 96 100 Huntsville, AL........................ 96 94 Indianapolis, IN...................... 97 82 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Metropolitan Area1 Professional Service and related United States......................... 100 100 Amarillo, TX.......................... 85 87 Anchorage, AK......................... 100 121 Atlanta, GA........................... 102 97 Augusta-Aiken, GA-SC.................. 100 89 Austin-San Marcos, TX................. 95 93 Birmingham, AL........................ 95 101 Bloomington, IN....................... 97 90 Boston-Worcester-Lawrence, MA-NH-ME-CT........................... 108 113 Brownsville-Harlingen-San Benito, TX.................................... 95 76 Buffalo-Niagara Falls, NY............. 91 106 Charleston-North Charleston, SC....... 94 86 Charlotte-Gastonia-Rock Hill, NC-SC... 93 98 Chicago-Gary-Kenosha, IL-IN-WI........ 107 107 Cincinnati-Hamilton, OH-KY-IN......... 99 103 Cleveland-Akron, OH................... 101 98 Columbus, OH.......................... 92 100 Corpus Christi, TX.................... 94 83 Dallas-Fort Worth, TX................. 101 96 Dayton-Springfield, OH................ 92 96 Denver-Boulder-Greeley, CO............ 102 99 Detroit-Ann Arbor-Flint, MI........... 104 101 Elkhart-Goshen, IN.................... 94 96 Fort Collins-Loveland, CO............. 95 94 Grand Rapids-Muskegon-Holland, MI..... 97 104 Great Falls, MT....................... 76 94 Greensboro-Winston Salem-High Point, NC.................................... 94 95 Greenville-Spartanburg-Anderson, SC... 90 97 Hartford, CT.......................... 108 119 Hickory-Morganton-Lenoir, NC.......... 89 90 Honolulu, HI.......................... 104 110 Houston-Galveston-Brazoria, TX........ 98 87 Huntsville, AL........................ 96 95 Indianapolis, IN...................... 97 97 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Office and Metropolitan Area1 Sales and administra- related tive support United States......................... 100 100 Amarillo, TX.......................... 90 87 Anchorage, AK......................... 108 106 Atlanta, GA........................... 97 104 Augusta-Aiken, GA-SC.................. 83 96 Austin-San Marcos, TX................. 100 97 Birmingham, AL........................ 94 96 Bloomington, IN....................... 78 88 Boston-Worcester-Lawrence, MA-NH-ME-CT........................... 106 113 Brownsville-Harlingen-San Benito, TX.................................... 75 77 Buffalo-Niagara Falls, NY............. 105 99 Charleston-North Charleston, SC....... 101 93 Charlotte-Gastonia-Rock Hill, NC-SC... 109 102 Chicago-Gary-Kenosha, IL-IN-WI........ 106 109 Cincinnati-Hamilton, OH-KY-IN......... 94 98 Cleveland-Akron, OH................... 95 101 Columbus, OH.......................... 105 99 Corpus Christi, TX.................... 88 84 Dallas-Fort Worth, TX................. 103 99 Dayton-Springfield, OH................ 97 92 Denver-Boulder-Greeley, CO............ 104 102 Detroit-Ann Arbor-Flint, MI........... 101 105 Elkhart-Goshen, IN.................... 95 92 Fort Collins-Loveland, CO............. 106 101 Grand Rapids-Muskegon-Holland, MI..... 109 100 Great Falls, MT....................... 88 80 Greensboro-Winston Salem-High Point, NC.................................... 86 97 Greenville-Spartanburg-Anderson, SC... 91 93 Hartford, CT.......................... 108 112 Hickory-Morganton-Lenoir, NC.......... 91 95 Honolulu, HI.......................... 105 99 Houston-Galveston-Brazoria, TX........ 95 98 Huntsville, AL........................ 100 96 Indianapolis, IN...................... 95 98 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Construction Installation, Metropolitan Area1 and maintenance, extraction and repair United States......................... 100 100 Amarillo, TX.......................... 83 81 Anchorage, AK......................... 125 111 Atlanta, GA........................... 93 102 Augusta-Aiken, GA-SC.................. 95 97 Austin-San Marcos, TX................. 88 100 Birmingham, AL........................ 84 99 Bloomington, IN....................... 78 85 Boston-Worcester-Lawrence, MA-NH-ME-CT........................... 124 115 Brownsville-Harlingen-San Benito, TX.................................... 67 78 Buffalo-Niagara Falls, NY............. 111 100 Charleston-North Charleston, SC....... 80 82 Charlotte-Gastonia-Rock Hill, NC-SC... 92 98 Chicago-Gary-Kenosha, IL-IN-WI........ 125 114 Cincinnati-Hamilton, OH-KY-IN......... 90 98 Cleveland-Akron, OH................... 101 102 Columbus, OH.......................... 98 100 Corpus Christi, TX.................... 92 81 Dallas-Fort Worth, TX................. 90 95 Dayton-Springfield, OH................ 100 106 Denver-Boulder-Greeley, CO............ 91 105 Detroit-Ann Arbor-Flint, MI........... 110 97 Elkhart-Goshen, IN.................... 109 92 Fort Collins-Loveland, CO............. 99 104 Grand Rapids-Muskegon-Holland, MI..... 106 96 Great Falls, MT....................... 118 100 Greensboro-Winston Salem-High Point, NC.................................... 91 98 Greenville-Spartanburg-Anderson, SC... 82 84 Hartford, CT.......................... 114 108 Hickory-Morganton-Lenoir, NC.......... 98 91 Honolulu, HI.......................... 113 115 Houston-Galveston-Brazoria, TX........ 91 95 Huntsville, AL........................ 91 90 Indianapolis, IN...................... 93 95 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Transporta- Metropolitan Area1 Production tion and material moving United States......................... 100 100 Amarillo, TX.......................... 89 92 Anchorage, AK......................... 115 110 Atlanta, GA........................... 103 107 Augusta-Aiken, GA-SC.................. 98 96 Austin-San Marcos, TX................. 94 91 Birmingham, AL........................ 87 98 Bloomington, IN....................... 97 104 Boston-Worcester-Lawrence, MA-NH-ME-CT........................... 108 111 Brownsville-Harlingen-San Benito, TX.................................... 76 76 Buffalo-Niagara Falls, NY............. 111 101 Charleston-North Charleston, SC....... 101 104 Charlotte-Gastonia-Rock Hill, NC-SC... 104 99 Chicago-Gary-Kenosha, IL-IN-WI........ 104 106 Cincinnati-Hamilton, OH-KY-IN......... 100 99 Cleveland-Akron, OH................... 105 106 Columbus, OH.......................... 96 101 Corpus Christi, TX.................... 89 86 Dallas-Fort Worth, TX................. 91 99 Dayton-Springfield, OH................ 107 105 Denver-Boulder-Greeley, CO............ 103 98 Detroit-Ann Arbor-Flint, MI........... 118 108 Elkhart-Goshen, IN.................... 98 101 Fort Collins-Loveland, CO............. 95 111 Grand Rapids-Muskegon-Holland, MI..... 102 101 Great Falls, MT....................... 96 92 Greensboro-Winston Salem-High Point, NC.................................... 101 104 Greenville-Spartanburg-Anderson, SC... 105 95 Hartford, CT.......................... 111 107 Hickory-Morganton-Lenoir, NC.......... 100 102 Honolulu, HI.......................... 106 104 Houston-Galveston-Brazoria, TX........ 100 95 Huntsville, AL........................ 100 93 Indianapolis, IN...................... 108 99 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Management, Metropolitan Area1 All business, occupations and financial Iowa City, IA......................... 98 95 Johnstown, PA......................... 87 86 Kansas City, MO-KS.................... 99 93 Knoxville, TN......................... 92 103 Lincoln, NE........................... 89 85 Los Angeles-Riverside-Orange County, CA.................................... 107 106 Louisville, KY-IN..................... 96 91 Melbourne-Titusville-Palm Bay, FL..... 93 85 Memphis, TN-AR-MS..................... 95 96 Miami-Fort Lauderdale, FL............. 96 107 Milwaukee-Racine, WI.................. 102 100 Minneapolis-St. Paul, MN-WI........... 108 101 Mobile, AL............................ 88 81 New Orleans, LA....................... 95 90 New York-Northern New Jersey- Long Island, NY-NJ-CT-PA................... 114 114 Norfolk-VA Beach-Newport News, VA-NC................................. 91 87 Ocala, FL............................. 90 88 Oklahoma City, OK..................... 91 87 Orlando, FL........................... 93 94 Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD........................... 105 106 Phoenix-Mesa, AZ...................... 97 99 Pittsburgh, PA........................ 96 91 Portland-Salem, OR-WA................. 104 104 Providence-Fall River-Warwick, RI-MA................................. 108 109 Reading, PA........................... 102 105 Reno, NV.............................. 98 97 Richland-Kennewick-Pasco, WA.......... 103 96 Richmond-Petersburg, VA............... 98 98 Rochester, NY......................... 97 89 Rockford, IL.......................... 100 90 Sacramento-Yolo, CA................... 106 102 Salinas, CA........................... 113 115 San Antonio, TX....................... 89 93 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Metropolitan Area1 Professional Service and related Iowa City, IA......................... 95 102 Johnstown, PA......................... 91 89 Kansas City, MO-KS.................... 95 95 Knoxville, TN......................... 98 84 Lincoln, NE........................... 88 91 Los Angeles-Riverside-Orange County, CA.................................... 109 109 Louisville, KY-IN..................... 96 103 Melbourne-Titusville-Palm Bay, FL..... 81 101 Memphis, TN-AR-MS..................... 92 91 Miami-Fort Lauderdale, FL............. 95 96 Milwaukee-Racine, WI.................. 97 100 Minneapolis-St. Paul, MN-WI........... 104 118 Mobile, AL............................ 85 84 New Orleans, LA....................... 96 91 New York-Northern New Jersey- Long Island, NY-NJ-CT-PA................... 116 114 Norfolk-VA Beach-Newport News, VA-NC................................. 90 95 Ocala, FL............................. 88 92 Oklahoma City, OK..................... 85 91 Orlando, FL........................... 88 94 Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD........................... 107 105 Phoenix-Mesa, AZ...................... 101 96 Pittsburgh, PA........................ 97 98 Portland-Salem, OR-WA................. 95 112 Providence-Fall River-Warwick, RI-MA................................. 111 112 Reading, PA........................... 94 101 Reno, NV.............................. 95 99 Richland-Kennewick-Pasco, WA.......... 95 113 Richmond-Petersburg, VA............... 95 98 Rochester, NY......................... 97 104 Rockford, IL.......................... 97 99 Sacramento-Yolo, CA................... 107 111 Salinas, CA........................... 121 115 San Antonio, TX....................... 91 87 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Office and Metropolitan Area1 Sales and administra- related tive support Iowa City, IA......................... 92 101 Johnstown, PA......................... 86 84 Kansas City, MO-KS.................... 96 100 Knoxville, TN......................... 98 95 Lincoln, NE........................... 85 87 Los Angeles-Riverside-Orange County, CA.................................... 115 106 Louisville, KY-IN..................... 99 98 Melbourne-Titusville-Palm Bay, FL..... 96 89 Memphis, TN-AR-MS..................... 104 98 Miami-Fort Lauderdale, FL............. 95 96 Milwaukee-Racine, WI.................. 102 104 Minneapolis-St. Paul, MN-WI........... 109 103 Mobile, AL............................ 95 90 New Orleans, LA....................... 101 96 New York-Northern New Jersey- Long Island, NY-NJ-CT-PA................... 112 114 Norfolk-VA Beach-Newport News, VA-NC................................. 94 91 Ocala, FL............................. 93 88 Oklahoma City, OK..................... 93 89 Orlando, FL........................... 101 90 Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD........................... 100 106 Phoenix-Mesa, AZ...................... 107 101 Pittsburgh, PA........................ 89 97 Portland-Salem, OR-WA................. 110 105 Providence-Fall River-Warwick, RI-MA................................. 103 106 Reading, PA........................... 106 102 Reno, NV.............................. 101 99 Richland-Kennewick-Pasco, WA.......... 105 100 Richmond-Petersburg, VA............... 99 99 Rochester, NY......................... 96 98 Rockford, IL.......................... 100 97 Sacramento-Yolo, CA................... 102 104 Salinas, CA........................... 129 111 San Antonio, TX....................... 84 91 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Construction Installation, Metropolitan Area1 and maintenance, extraction and repair Iowa City, IA......................... 101 102 Johnstown, PA......................... 96 88 Kansas City, MO-KS.................... 108 104 Knoxville, TN......................... 85 87 Lincoln, NE........................... 85 93 Los Angeles-Riverside-Orange County, CA.................................... 110 106 Louisville, KY-IN..................... 110 94 Melbourne-Titusville-Palm Bay, FL..... 92 101 Memphis, TN-AR-MS..................... 94 98 Miami-Fort Lauderdale, FL............. 91 93 Milwaukee-Racine, WI.................. 110 101 Minneapolis-St. Paul, MN-WI........... 113 107 Mobile, AL............................ 94 98 New Orleans, LA....................... 90 91 New York-Northern New Jersey- Long Island, NY-NJ-CT-PA................... 128 114 Norfolk-VA Beach-Newport News, VA-NC................................. 87 94 Ocala, FL............................. 83 106 Oklahoma City, OK..................... 101 108 Orlando, FL........................... 91 93 Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD........................... 106 112 Phoenix-Mesa, AZ...................... 82 100 Pittsburgh, PA........................ 96 96 Portland-Salem, OR-WA................. 114 110 Providence-Fall River-Warwick, RI-MA................................. 104 108 Reading, PA........................... 102 100 Reno, NV.............................. 96 111 Richland-Kennewick-Pasco, WA.......... 111 93 Richmond-Petersburg, VA............... 92 99 Rochester, NY......................... 94 89 Rockford, IL.......................... 111 104 Sacramento-Yolo, CA................... 103 118 Salinas, CA........................... 132 110 San Antonio, TX....................... 97 97 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Transporta- Metropolitan Area1 Production tion and material moving Iowa City, IA......................... 101 96 Johnstown, PA......................... 84 82 Kansas City, MO-KS.................... 104 97 Knoxville, TN......................... 89 96 Lincoln, NE........................... 91 91 Los Angeles-Riverside-Orange County, CA.................................... 99 102 Louisville, KY-IN..................... 99 94 Melbourne-Titusville-Palm Bay, FL..... 105 103 Memphis, TN-AR-MS..................... 97 96 Miami-Fort Lauderdale, FL............. 97 98 Milwaukee-Racine, WI.................. 106 107 Minneapolis-St. Paul, MN-WI........... 117 107 Mobile, AL............................ 96 91 New Orleans, LA....................... 95 100 New York-Northern New Jersey- Long Island, NY-NJ-CT-PA................... 105 110 Norfolk-VA Beach-Newport News, VA-NC................................. 93 89 Ocala, FL............................. 95 103 Oklahoma City, OK..................... 89 87 Orlando, FL........................... 85 106 Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD........................... 100 108 Phoenix-Mesa, AZ...................... 96 100 Pittsburgh, PA........................ 99 96 Portland-Salem, OR-WA................. 101 100 Providence-Fall River-Warwick, RI-MA................................. 112 105 Reading, PA........................... 99 102 Reno, NV.............................. 98 101 Richland-Kennewick-Pasco, WA.......... 98 100 Richmond-Petersburg, VA............... 102 100 Rochester, NY......................... 100 100 Rockford, IL.......................... 103 104 Sacramento-Yolo, CA................... 111 108 Salinas, CA........................... 95 104 San Antonio, TX....................... 96 86 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Management, Metropolitan Area1 All business, occupations and financial San Diego, CA......................... 108 106 San Francisco-Oakland-San Jose, CA.... 119 114 Seattle-Tacoma-Bremerton, WA.......... 109 103 Springfield, MA....................... 109 104 Springfield, MO....................... 87 82 St. Louis, MO-IL...................... 101 97 Tallahassee, FL....................... 91 81 Tampa-St. Petersburg-Clearwater, FL... 95 89 Visalia-Tulare-Porterville, CA........ 99 101 Washington-Baltimore, DC-MD-VA-WV..... 107 103 York, PA.............................. 97 102 Youngstown-Warren, OH................. 96 96 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Metropolitan Area1 Professional Service and related San Diego, CA......................... 110 112 San Francisco-Oakland-San Jose, CA.... 117 123 Seattle-Tacoma-Bremerton, WA.......... 99 119 Springfield, MA....................... 109 105 Springfield, MO....................... 88 84 St. Louis, MO-IL...................... 99 94 Tallahassee, FL....................... 90 96 Tampa-St. Petersburg-Clearwater, FL... 91 95 Visalia-Tulare-Porterville, CA........ 98 101 Washington-Baltimore, DC-MD-VA-WV..... 107 106 York, PA.............................. 98 98 Youngstown-Warren, OH................. 93 91 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Office and Metropolitan Area1 Sales and administra- related tive support San Diego, CA......................... 106 105 San Francisco-Oakland-San Jose, CA.... 124 122 Seattle-Tacoma-Bremerton, WA.......... 111 108 Springfield, MA....................... 113 110 Springfield, MO....................... 91 86 St. Louis, MO-IL...................... 100 99 Tallahassee, FL....................... 92 91 Tampa-St. Petersburg-Clearwater, FL... 98 100 Visalia-Tulare-Porterville, CA........ 102 97 Washington-Baltimore, DC-MD-VA-WV..... 106 111 York, PA.............................. 91 95 Youngstown-Warren, OH................. 92 92 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Construction Installation, Metropolitan Area1 and maintenance, extraction and repair San Diego, CA......................... 107 107 San Francisco-Oakland-San Jose, CA.... 122 117 Seattle-Tacoma-Bremerton, WA.......... 111 106 Springfield, MA....................... 105 110 Springfield, MO....................... 77 91 St. Louis, MO-IL...................... 117 107 Tallahassee, FL....................... 88 87 Tampa-St. Petersburg-Clearwater, FL... 97 94 Visalia-Tulare-Porterville, CA........ 92 93 Washington-Baltimore, DC-MD-VA-WV..... 100 116 York, PA.............................. 102 99 Youngstown-Warren, OH................. 99 95 (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Transporta- Metropolitan Area1 Production tion and material moving San Diego, CA......................... 104 101 San Francisco-Oakland-San Jose, CA.... 108 108 Seattle-Tacoma-Bremerton, WA.......... 117 113 Springfield, MA....................... 108 115 Springfield, MO....................... 94 89 St. Louis, MO-IL...................... 104 108 Tallahassee, FL....................... 95 93 Tampa-St. Petersburg-Clearwater, FL... 93 103 Visalia-Tulare-Porterville, CA........ 105 97 Washington-Baltimore, DC-MD-VA-WV..... 108 106 York, PA.............................. 96 103 Youngstown-Warren, OH................. 102 110 1 A metropolitan area can be a Metropolitan Statistical Area (MSA) or Consolidated Metropolitan Statistical Area (CMSA) as defined by the Office of Management and Budget, 1994. Technical Note Pay relative controls and calculations Pay relatives control for differences among areas in occupational composition as well as establishment and occupational characteristics. Metropolitan areas often differ greatly in the composition of establishments and occupations that are available to the local workforce. For example, in Brownsville, Texas, the ratio of workers in the high-paying management, business, and financial occupational group to the number of workers in all occupations is under 6 percent, whereas nationally this ratio is over 8 percent.(1) In addition to these factors, the NCS collects compensation data for metropolitan areas at different times during the year. Payroll reference dates differ between areas which makes direct comparisons between areas difficult. The pay relative approach controls for these differences to isolate the geographic effect on wage determination. To illustrate the importance of controlling for these effects, consider the following example. The average pay for professional and related workers in San Francisco is $37.57 and the average pay for professional and related workers in the entire United States is $29.76.(2) A simple pay comparison can be calculated from the ratio of the two average pay levels, multiplied by 100 to express the comparison as a percentage. The pay comparison in the example is calculated as: ($37.57 / $29.76) X 100 = 126 This comparison does not control for differences between San Francisco and the nation in the mix of occupations, industries, and other factors. A more accurate estimate of the geographic effect of wages in San Francisco can be obtained by taking these differences into account. Controlling for differences in occupational composition, establishment and occupational characteristics, and the payroll reference date in San Francisco relative to the nation as the whole, the pay relative for professional and related occupations in San Francisco is equal to 117. Historical data Historical pay relative data are available for 1992-1996, 1998, 2002, 2004, and 2005. There are several differences between the recent pay relatives and the pay relatives for earlier years, including different industry and occupation classification systems, varying methodology, and different survey designs. These differences limit comparability. The pay relatives for 2004, 2005, and 2006 were calculated using the same industry and occupation classification systems, methodology, and survey design. Nonetheless, comparisons between the estimates for these years should be made only with a high degree of caution. Survey methodology Pay relatives were estimated using a multivariate regression technique methodology to control for interarea differences. This technique controls for the following ten characteristics: - Occupational type - Industry type - Work level - Full-time / part-time status - Time / incentive status - Union / nonunion status - Ownership type - Profit / non-profit status - Establishment employment - Payroll reference date Even accounting for the characteristics used in the current regression analysis, there is still wage variation across the areas. The variation is due to differences in wage determinants that were not included in the model. Examples of these determinants include price levels, environmental amenities such as a pleasant climate, and cultural amenities. The pay relatives in this release, as with estimates from any sample survey, are subject to sampling and non-sampling errors. Sampling errors are differences that occur between the pay relatives estimated from the sample and the true pay relatives derived from the population. Pay relatives are also subject to a variety of non-sampling errors that can influence the estimates. The NCS may be unable to obtain information for some establishments; there may be difficulties with survey definitions; respondents may be unable to provide correct information, or mistakes in recording or coding the data may occur. Non-sampling errors of these kinds were not specifically measured. However, they are expected to be minimal due to the extensive training of the field economists who gathered the survey data, computer edits of the data, and detailed data review. For more details, see Maury B. Gittleman, "Pay Relatives for Metropolitan Areas in the U.S." Monthly Labor Review, March 2005, pp. 46-53, and Parastou Karen Shahpoori, "Pay Relatives for Major Metropolitan Areas," Compensation and Working Conditions, Spring 2003. __________________________________________________________________________________________________________________________________ Footnotes (1) Data for this example are based on the May 2006 Occupational Employment and Wage Estimates, http://www.bls.gov/oes/current/oessrcma.htm. (2) Average pay for professional workers in San Francisco and for the United States are based on wage estimates published in the San Francisco-Oakland-San Jose, CA National Compensation Survey, March 2006 and the National Compensation Survey: Occupational Wages in the United States, June 2006, http://www.bls.gov/ncs/ocs/compub.htm.