Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6378 USDL 99-96 For release: 10:00 A.M. EDT Media contact: 606-5902 Thursday, April 15, 1999 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: FIRST QUARTER 1999 Median weekly earnings of the nation's 95.6 million full-time wage and salary workers were $538 in the first quarter of 1999, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 3.3 percent higher than a year earlier, compared with a gain of 1.7 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. (See the explanatory note.) Highlights from the first quarter data are: --Women who usually worked full time had median earnings of $468 a week, or 76.5 percent of the $612 median for men. The female-to-male earnings ratios for blacks (84.5 percent) and for Hispanics (85.5 percent) were higher than the ratio for whites (75.8 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $483 per week, 76.8 percent of the median for white men ($629). The difference was much less among women, as black women's median earnings ($408) were 85.5 percent of those for their white counterparts ($477). Overall, median earnings of Hispanics who worked full time ($387) were lower than those of blacks ($443) and whites ($560). (See table 1.) --Among men, those in the 45- to 54-year age group had the highest median weekly earnings ($751), followed by 55- to 64-year-old men, with median earnings of $735. Among women, earnings also were highest for those 45-to-54 years old ($510), followed by 35- to 44-year olds, with a median of $495. (See table 2.) --Among the major occupational groups, persons employed full time in managerial and professional specialty occupations had the highest median weekly earnings--$939 for men and $662 for women--while men and women in service and farm jobs had the lowest earnings. (See table 3.) --Full-time workers age 25 and over with less than a high school diploma had median weekly earnings of $342, compared with $481 for high school graduates (no college) and $842 for college graduates. Among college graduates with advanced degrees (professional or master's degree and above), the highest 10 percent of male workers earned $2,181 or more, compared with $1,465 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 I I 1998 1999 I I I I 1998 1999 1998 1999 SEX AND AGE Total, 16 years and over.................................. 93,183 95,648 $521 $538 $310 $315 Men, 16 years and over................................. 52,791 54,054 596 612 355 358 16 to 24 years....................................... 5,560 5,888 337 360 201 211 25 years and over.................................... 47,230 48,167 629 655 375 384 Women, 16 years and over............................... 40,392 41,593 455 468 271 274 16 to 24 years....................................... 4,110 4,336 304 331 181 194 25 years and over.................................... 36,283 37,257 480 488 286 286 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 77,526 79,295 543 560 323 329 Men.................................................. 44,840 45,914 611 629 364 368 Women................................................ 32,686 33,380 467 477 278 280 Black.................................................. 11,383 11,935 418 443 249 260 Men.................................................. 5,579 5,735 452 483 269 283 Women................................................ 5,803 6,201 395 408 235 239 Hispanic origin........................................ 10,183 10,620 364 387 217 227 Men.................................................. 6,475 6,702 381 407 227 238 Women................................................ 3,707 3,917 330 348 197 204 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 1999, data reflect 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, first quarter 1999 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......................................... 95,648 $538 54,054 $612 41,593 $468 16 to 24 years.......................................... 10,224 346 5,888 360 4,336 331 16 to 19 years........................................ 1,634 284 1,094 295 540 259 20 to 24 years........................................ 8,590 363 4,794 381 3,796 343 25 years and over....................................... 85,424 580 48,167 655 37,257 488 25 to 54 years........................................ 75,415 579 42,439 649 32,976 490 25 to 34 years...................................... 25,178 511 14,391 562 10,787 465 35 to 44 years...................................... 28,416 598 16,271 689 12,145 495 45 to 54 years...................................... 21,821 633 11,776 751 10,045 510 55 years and over..................................... 10,009 590 5,728 716 4,281 474 55 to 64 years...................................... 8,930 605 5,120 735 3,810 486 65 years and over................................... 1,078 403 608 480 470 367 White 16 years and over......................................... 79,295 560 45,914 629 33,380 477 16 to 24 years.......................................... 8,617 351 5,110 363 3,507 335 25 years and over....................................... 70,678 597 40,805 681 29,873 496 25 to 54 years........................................ 62,104 596 35,852 675 26,252 498 55 years and over..................................... 8,574 602 4,953 742 3,621 479 Black 16 years and over......................................... 11,935 443 5,735 483 6,201 408 16 to 24 years.......................................... 1,214 309 543 321 671 302 25 years and over....................................... 10,721 469 5,191 500 5,530 428 25 to 54 years........................................ 9,735 468 4,704 500 5,031 426 55 years and over..................................... 986 479 487 500 499 446 Hispanic origin 16 years and over......................................... 10,620 387 6,702 407 3,917 348 16 to 24 years.......................................... 1,908 303 1,214 306 694 298 25 years and over....................................... 8,712 412 5,489 441 3,223 366 25 to 54 years........................................ 7,932 414 4,978 439 2,953 371 55 years and over..................................... 780 385 510 477 270 330 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 1999, data reflect 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 I I I I 1998 1999 1998 1999 TOTAL Managerial and professional specialty.................... 28,748 30,209 $741 $776 Executive, administrative, and managerial.............. 14,026 14,846 730 768 Professional specialty................................. 14,721 15,362 750 784 Technical, sales, and administrative support............. 26,602 26,629 476 483 Technicians and related support........................ 3,414 3,391 597 615 Sales occupations...................................... 9,285 9,235 505 524 Administrative support, including clerical............. 13,904 14,003 435 441 Service occupations...................................... 10,415 10,725 323 341 Private household...................................... 382 399 214 235 Protective service..................................... 2,197 2,135 595 571 Service, except private household and protective....... 7,836 8,191 301 315 Precision production, craft, and repair.................. 11,535 11,804 567 588 Mechanics and repairers................................ 4,127 4,419 596 619 Construction trades.................................... 3,788 3,954 535 554 Other precision production, craft, and repair.......... 3,620 3,431 552 580 Operators, fabricators, and laborers..................... 14,755 15,015 409 421 Machine operators, assemblers, and inspectors.......... 7,057 7,116 405 414 Transportation and material moving occupations......... 4,228 4,237 505 497 Handlers, equipment cleaners, helpers, and laborers.... 3,469 3,662 342 361 Farming, forestry, and fishing........................... 1,128 1,267 302 320 Men Managerial and professional specialty.................... 14,516 15,268 865 939 Executive, administrative, and managerial.............. 7,384 7,799 864 949 Professional specialty................................. 7,132 7,470 865 929 Technical, sales, and administrative support............. 10,222 10,194 606 618 Technicians and related support........................ 1,751 1,680 697 706 Sales occupations...................................... 5,179 5,205 619 646 Administrative support, including clerical............. 3,292 3,309 522 524 Service occupations...................................... 5,243 5,227 388 406 Private household...................................... 15 20 (1) (1) Protective service..................................... 1,854 1,810 604 589 Service, except private household and protective....... 3,374 3,397 317 335 Precision production, craft, and repair.................. 10,564 10,810 585 603 Mechanics and repairers................................ 3,943 4,246 598 621 Construction trades.................................... 3,720 3,891 539 557 Other precision production, craft, and repair.......... 2,901 2,674 613 634 Operators, fabricators, and laborers..................... 11,309 11,476 452 460 Machine operators, assemblers, and inspectors.......... 4,591 4,592 475 479 Transportation and material moving occupations......... 3,865 3,898 515 508 Handlers, equipment cleaners, helpers, and laborers.... 2,853 2,985 350 370 Farming, forestry, and fishing........................... 936 1,079 303 337 Women Managerial and professional specialty.................... 14,231 14,940 647 662 Executive, administrative, and managerial.............. 6,642 7,048 620 633 Professional specialty................................. 7,589 7,893 671 694 Technical, sales, and administrative support............. 16,381 16,435 418 427 Technicians and related support........................ 1,663 1,711 512 520 Sales occupations...................................... 4,106 4,030 386 404 Administrative support, including clerical............. 10,612 10,694 414 421 Service occupations...................................... 5,172 5,498 290 306 Private household...................................... 367 379 211 230 Protective service..................................... 343 325 492 495 Service, except private household and protective....... 4,462 4,794 288 304 Precision production, craft, and repair.................. 971 994 404 413 Mechanics and repairers................................ 184 173 508 544 Construction trades.................................... 68 63 (1) (1) Other precision production, craft, and repair.......... 719 758 385 381 Operators, fabricators, and laborers..................... 3,445 3,539 321 329 Machine operators, assemblers, and inspectors.......... 2,466 2,523 323 331 Transportation and material moving occupations......... 363 338 325 367 Handlers, equipment cleaners, helpers, and laborers.... 616 677 308 312 Farming, forestry, and fishing........................... 193 188 297 261 1 Data not shown where base is less than 100,000. Beginning in January 1999, data reflect 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, first quarter 1999 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.................................. 95,648 $269 $365 $538 $810 $1,175 Men..................................................... 54,054 290 406 612 922 1,336 Women................................................... 41,593 246 322 468 678 956 White................................................... 79,295 275 377 560 839 1,223 Men................................................... 45,914 295 418 629 945 1,363 Women................................................. 33,380 249 331 477 693 972 Black................................................... 11,935 243 311 443 645 914 Men................................................... 5,735 260 336 483 704 999 Women................................................. 6,201 235 295 408 600 802 Hispanic................................................ 10,620 226 279 387 581 840 Men................................................... 6,702 239 294 407 611 898 Women................................................. 3,917 202 254 348 515 732 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 85,424 283 389 580 853 1,230 Less than a high school diploma....................... 8,376 213 266 342 490 653 High school graduates, no college..................... 26,976 270 346 481 670 908 Some college or associate degree...................... 24,060 299 403 571 786 1,059 College graduates, total.............................. 26,012 423 596 842 1,208 1,652 Bachelor's degree only.............................. 17,350 402 558 770 1,127 1,521 Advanced degree..................................... 8,662 497 698 978 1,371 1,906 Men, 25 years and over................................ 48,167 310 444 655 962 1,375 Less than a high school diploma..................... 5,285 238 295 393 532 720 High school graduates, no college................... 15,249 298 400 567 768 1,005 Some college or associate degree.................... 12,929 342 475 660 907 1,204 College graduates, total............................ 14,704 479 665 964 1,368 1,897 Bachelor's degree only............................ 9,787 454 617 894 1,262 1,728 Advanced degree................................... 4,917 579 799 1,132 1,554 2,181 Women, 25 years and over.............................. 37,257 256 338 488 709 985 Less than a high school diploma..................... 3,091 187 234 289 373 503 High school graduates, no college................... 11,726 241 305 402 529 699 Some college or associate degree.................... 11,131 277 355 484 649 865 College graduates, total............................ 11,308 384 526 730 986 1,325 Bachelor's degree only............................ 7,564 $365 $495 $674 915 1,227 Advanced degree................................... 3,745 448 616 834 1,126 1,465 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 1999, data reflect 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) Characteristic I I I I 1998 1999 1998 1999 SEX AND AGE Total, 16 years and over.................................. 21,705 21,671 $152 $158 Men, 16 years and over................................. 6,797 6,672 142 149 16 to 24 years....................................... 3,746 3,619 114 117 25 years and over.................................... 3,051 3,052 198 206 Women, 16 years and over............................... 14,908 14,999 155 163 16 to 24 years....................................... 4,845 4,818 111 113 25 years and over.................................... 10,062 10,180 184 197 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 18,646 18,710 152 160 Men.................................................. 5,799 5,628 140 149 Women................................................ 12,847 13,082 157 164 Black.................................................. 2,165 2,119 147 149 Men.................................................. 659 731 149 146 Women................................................ 1,506 1,388 147 150 Hispanic origin........................................ 1,869 1,939 155 157 Men.................................................. 680 667 167 154 Women................................................ 1,190 1,272 150 158 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 1999, data reflect revised population controls used in the household survey.