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Profiles of Occupational Pay: A Chartbook __________________________ U.S. Department of Labor Bureau of Labor Statistics 1979 Bulletin 2037 331.22 ULSP £ 0 3 y ___________________________________________________ Material in this publication is in the public domain and may be reproduced without permission of the Federal Government. Please credit the Bureau of Labor Statistics and cite Profiles of Occupational Pay: A Chartbook, Bulletin 2037. Profiles of Occupational Pay: A Chartbook S. Department of Labor ay Marshall, Secretary jreau of Labor Statistics met L. Norwood, Commissioner jcember 1979 illetin 2037 If LSA-SP For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 Stock Number 029-001-02415-1 Preface The Bureau of Labor Statistics has systematically collected wage data by occupation since the turn of the c e n tu ry first by industry, then across industry lines by metropolitan area, and most recently across industry lines on a nationwide basis. As the most comprehensive source of current information on earnings in particular occupations, this body of data has played an important role in clarifying public policy issues concerned with wages and in expediting labor-management negotiations. This chartbook draws upon the wage survey programs of the Bureau and other data to illuminate some of the factors that affect workers’ earnings. Part I looks at pay relation ships within major occupational groups. Part II profiles some characteristics of high- and low-paying metropolitan areas covered by the Area Wage Survey program. Part III portrays some characteristics of high- and low-paying manufacturing industries that are part of the Industry Wage Survey program. This chartbook was developed by Martin E. Personick of the Office of Wages and Industrial Relations, Division of Occupational Wage Structures, under the direction of George L. Stelluto, Assistant Commissioner, and Charles M. O’Connor, Division Chief. John H. Cox and Sandra L. King of the Division provided valuable assistance. Contents Page Part I . An overview of occupational pay ................................................................................................................... 1 Occupational distribution of employed persons, 1978 ......................................................... Components of compensation of employees in private nonfarm establishments, 1977............................................................................................. Chart 3. Median usual weekly earnings of full-time wage and salary workers by occupational group, May 1978......................................................... Chart 4. Salary ranges of chemists and engineers in private industry, March 1978............................................................................................................ Chart 5. Earnings in maintenance craft occupations, July 1977......................................................... Chart 6. Average union wage rates for journeymen as a percent of rates for helpers and laborers, building construction, 1907-78 ................................................................................................................................. Chart 7. Industry pay ranges in production worker occupations, April-September 1976 ............................ Chart 8. Earnings distributions for chemical operators and helpers in industrial chemicals establishments, Chicago metropolitan area, June 1976 ................................................................................ Chart 9. Percent of women and men production workers earning less than their industry average, 1974-76 ............................................................... Chart 10. Areas with highest and lowest pay relatives for four occupational groups in private industry, 1976 ............................................................. 3 Chart 1. Chart 2. 5 7 9 11 13 15 17 19 21 Part II. Profiles of high-and low-paying metropolitan a re a s .................................................................................. 22 Distribution of areas by: Chart 11. Chart 12. Chart 13. Chart 14. Chart 15. Chart 16. Census region......................................................................................................................... Size of area employment........................................................................................................ Average establishment s iz e .................................................................................................. Extent of labor-management contract coverage .................................................................. Relative importance of manufacturing employment............................................................. Relative importance of high- or low-payingmanufacturing................................................... 25 27 29 31 33 35 Part III. Profiles of high- and low-paying manufacturing in dustries...................................................................... 36 Chart 17. Pay relationships for production and related workers among 40 manufacturing industries, 1977 ......................................................................................... 37 Distribution of manufacturing industries by: Chart 18. Capital-to-labor ra tio .............................................................................................................. Chart 19. Extent of shipments concentrated in large firm s .................................................................. Chart 20. Average plant s iz e ................................................................................................................. Chart 21. Extent of labor-management contract coverage .................................................................. Chart 22. Extent of location in metropolitan areas............ ................................................................. Chart 23. Extent of location in the South.............................................................................................. Chart 24. Incidence of incentive pay systems....................................................................................... Chart 25. Relative dispersion of earnings............................................................................................. Chart 26. Proportion of women production workers ............................................................................ Chart 27. Worker attachment to the Federal minimum w a g e .............................................................. 39 41 43 45 47 49 51 53 55 57 Appendixes: A. BLS occupational wage surveys ...................................................................................................... B. Selected bibliography — Monthly Labor Review articles on occupational wage structure s...................................................................................................... 58 60 Part I . An Overview of Occupational Pay Change is characteristic of American workers, who may change jobs, skills, locations, and even occupations several times over the course of their work lives. Yet some patterns are discernible within this ever-changing labor force that are highlighted in the following charts. Based on data gathered by BLS on the earnings of different groups of workers, the charts provide a panoramic view of the Nation’s work force. They illustrate wage variation among and within occupations and suggest some of the factors that directly influence pay levels and pay structure. 1 Workers are customarily grouped into four broad occupational categories — white-collar, blue-collar, service, and farm White-collar workers make up half of all employed persons; blue-collar workers, one-third; and service workers, most of the remainder. Within these broad categories are workers with a diversity of occupations and skills. Employed persons, 1978 [in thousands] T o t a l..................................................................... 94,373 White-collar workers........................................... 47,205 Professional and technical w o rk e rs............... Managers and adm inistrators......................... Sales workers ....................................... Clerical workers............................................... 14,245 10,105 5,951 16,904 Blue-collar workers............................................. 31,531 . Craft and kindred workers ............................... Operatives, except transport........................... Transport equipment operatives..................... Nonfarm laborers ............................................ 12,386 10,875 3,541 4,729 Service workers................................................... 12,839 Private household workers ............................. Service workers, except private household . . . 1,162 11,677 Farm workers....................................................... 2,798 Chart 1. Occupational distribution of employed persons, 1978 4 Most workers receive a variety of benefits in addition to pay for time worked Benefits such as paid vacations and holidays, health insurance, and retirement programs have become an important part of workers’ compensation. But pay for time worked still accounts for 3 of every 4 payroll dollars employers spend. Chart 2. Components of compensation of employees in private nonfarm establishments, 1977 White-collar employees1 Blue-collar and service employees1 3.4% ------------ Other2 -------------- 2 .0 % 14.1% — Health, insurance, and — retirement benefits 14.9% 6.7% —Vacation and holiday p a y - 5.6% — 77.5% 75.8% Pay for time worked — 1 Retail sales workers are included with blue-collar and service employees in this chart. ^Includes unemployment benefits, savings and thrift plans, and nonproduction bonuses. http://fraser.stlouisfed.org/ 6 Federal Reserve Bank of St. Louis Major occupational groups exhibit wide differences in pay levels Usual weekly earnings of professional and technical workers were about double those of service workers and two-thirds higher than clerical workers’ earnings in May 1978. Moreover, large disparities in pay existed between occupations that are part of the same group: Median usual weekly earnings, May 1978 Professional and technical workers............... $294 Engineers....................................................... Engineering and science technicians........... 431 271 Service workers, except private household .. 152 Protective service workers............................. Cleaning service workers.............................. 254 156 Chart 3. Median usual weekly earnings of full-time wage and salary workers by occupational group, May 1978 White-collar Blue-collar Service Farm 7 Within an occupation are workers whose jobs differ in complexity and responsibility and whose pay varies accordingly In white-collar occupations, median salaries of workers in the highest work levels are several times as high as those in entry or developmental positions of the same occupation. The latter usually require less training, embody simpler job functions, and carry little or no supervisory responsibility. Although they may be at equivalent work levels, workers in different occupations, such as engineers and chemists, may find the pay advantage shifting as they move up the ladder: Median monthly salary, March 1978 Engineer I ................................................. $1,316 Chemist I ................................................. 1,135 Engineer IV .............................................. 1,983 Chemist I V ............................................... 1,942 EngineerVIII ............................................ 3,450 Chemist V III.............................................. 3,859 Chart 4. Salary ranges of chemists and engineers in private industry, March 1978 Monthly salary 0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Chemist I II - IV V VI VII VIII Engineer I - - IV-V -VI - VII - VIII - Note: Salary ranges shown exclude top and bottom 10 percent of workers in each work level. Work levels are as defined in the National Survey of Professional, Administrative, Technical, and Clerical Pay. $4,000 $4,500 $5,000 Maintenance craft workers have a fairly homogeneous pay structure As is true in every occupation, there is a range of earnings within each of the highly skilled maintenance craft jobs. The range is generally narrower, however, than for other groups, largely because pay rates in these occupations are commonly set by labor-management agreements at a single rate for a journeyman worker. Earnings are also less dispersed because maintenance craft workers are concentrated in large firms—those with the greatest demand for workers with specialized skills. Chart 5. Earnings in maintenance craft occupations, July 1977 Hourly earnings $5.00 $5. 50 $6. 00 $6. 50 $7. 00 V-/ul [Joi i i . 1O $7. 50 $8. 50 $8. 00 i 1 i Electricians— Median i 1 M achinists— Mechanics (machinery) Mechanics (automotive) i 1 i 1 i 1 M illw rights— Tool-and-die makers Note : Salary ranges shown exclude top and bol tom 10 percen t of workers ir each occupat on. i1 $9. 30 $9.50 http://fraser.stlouisfed.org/ 12 Federal Reserve Bank of St. Louis The wage advantage of skilled over unskilled workers has narrowed substantially since the turn of the century Skilled craft workers generally have not maintained their earlier substantial pay advantage over unskilled workers. Uniform cents-per-hour increases to unionized journeymen and helpers and laborers in construction, for example, con tributed to a steady narrowing of the difference in wage rates over several decades. By the mid-1960’s, this dif ferential stabilized at about one-third. A similar trend occurred in manufacturing during the first half of the century. Annual average percent increase Chart 6. Average union wage rates for journeymen as a percent of rates for helpers and laborers, building construction, 1907-78 The industry in which a job is located may be a more important influence on pay than the occupation itself Unskilled jobs invariably are at the bottom of the pay structure in an industry. Yet they may pay more than jobs that are higher in the pay structure in other industries. Janitors in petroleum refining, for example, are paid more, on average, than workers in the most skilled production occupations of the men’s suit industry. Chart 7. Industry pay ranges in production worker occupations, April - September 1976 Average hourly earnings Petroleum refining Industrial chemicals Cigarettes Shipbuilding Men’s suits Textile dyeing Hosiery, except women’s Women’s hosiery 15 Earnings of individuals in the same job may vary greatly Length of employee service and differing pay scales among establishments are two of the factors leading to differences in pay for workers doing the same job. For these same reasons, workers in different jobs, one skilled and the other unskilled—as in the example shown—may have similar earnings. Chart 8. Earnings distributions for chemical operators and helpers in industrial chemicals establishments, Chicago metropolitan area, June 1976 Percent of workers 17 Most women earn less than the average for the industry in which they work, even in high-paying manufacturing industries http://fraser.stlouisfed.org/ 18 Reserve Bank of St. Louis Federal As is true for some other groups of workers, women do not necessarily reap the benefits of being employed in a high-paying manufacturing industry. A large majority of women earned less than the industry average in four such industries studied by BLS. In the glass container industry, where women made up one-third of the production work force, only 3 percent of the women earned above the average, compared to 46 percent of the men. This primarily reflects the way men and women were distributed among occupations. Chart 9. Percent of women and men production workers earning less than their industry average, 1974-76 Percent 1975 1974 1974 19 0 Broad wage differences exist among metropolitan areas Location is an important factor in pay levels for most groups of workers. This is especially true of unskilled workers, whose pay is strongly affected by local labor market forces. Among 70 metropolitan areas studied by BLS in 1976, Saginaw, Michigan, reported pay for unskilled plant workers at 41 percent above the average for all metropolitan areas; San Antonio, Texas, in contrast, was 33 percent below that average. Chart 10. Areas with highest and lowest pay relatives for four occupational groups in private industry, 1976 Office clerical workers Al l-metropol itan-area average = 100 140 Electronic data processing workers Al l-metropol itan-area Average = 100 140 Skilled maintenance workers Unskilled plant workers 140 120 — 100 — 80 — 60 — 40 San Francisco Greenville, S.C. Saginaw San Antonio 21 22 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Part II. Profiles of High- and Low-paying Metropolitan Areas Metropolitan areas are the hub of most economic a c tiv ity labor markets within which 2 of every 3 of the Nation’s workers reside. This section depicts some characteristics of high- and low-paying urban areas that help explain their relative pay levels. The areas profiled in the following charts are part of the Bureau’s annual wage survey program, which covers 70 areas representative of the Nation’s 262 mainland metropolitan areas. These surveys coverall manufacturing industries but exclude from the nonmanufacturing sector agriculture, mining, construction, and government. The year of reference is 1976. High- and low-paying areas are shown on the adjoining page for two broad occupational groups: (1) Office workers, referring to clerical and electronic data processing personnel; and (2) maintenance and unskilled plant workers. The methodology for selecting areas by pay level appears in appendix A. Office workers Maintenance and unskilled plant workers High-paying areas Low-paying areas High-paying areas Low-paying areas Anaheim-Santa AnaGarden Grove Atlanta Chicago Detroit Los Angeles-Long Beach Newark New York San Francisco-Oakland San Jose Seattle-Everett Chattanooga Greenvi 11e-Spartan bu rg Jackson (Miss.) Memphis New Orleans Oklahoma City Richmond San Antonio Buffalo Chicago Cleveland Davenport-Rock IslandMoline Dayton Detroit Kansas City Milwaukee Minneapolis-St. Paul Portland (Oreg.-Wash.) Sacramento San Francisco-Oakland San Jose Seattle-Everett Toledo Greenvi 11e-Spartan burg Huntsville Jackson (Miss.) Miami Norfolk-Virginia BeachPortsmouth Oklahoma City Providence-WarwickPawtucket 23 http://fraser.stlouisfed.org/ >4 Federal Reserve Bank of St. Louis Regional location is a factor in pay differences among labor markets High-paying metropolitan areas are predominantly in the North Central region and the West; low-paying areas are typically in the South. However, two large Southern areas— Atlanta and Washington—are among the high-paying areas for office workers. Chart 11. Distribution of areas by Census region Office workers Number of areas Highpaying areas Lowpaying areas Maintenance and unskilled plant workers Highpaying areas Lowpaying areas Areas located in: Northeast North Central South West http://fraser.stlouisfed.org/ >6 Federal Reserve Bank of St. Louis High-paying areas commonly are larger labor markets Large areas are often associated with high pay levels that may compensate in part for higher living and commuting costs. Half of the high-paying areas studied, for example, were large labor markets. Low-paying areas, however, were of medium size; the number of workers usually fell within the 100,000 -500,000 range. Chart 12. Distribution of areas by size of area employment Office workers Highpaying areas Lowpaying areas Maintenance and unskilled plant workers Highpaying areas Lowpaying areas Area employment: Under 100,000 53 100,000 to 500,000 500,000 or more Large establishment size is more closely associated with high pay for office workers than for plant workers Large establishments have long been thought to have high pay levels. The evidence, however, is not conclusive—often holding only for certain industries or groups of workers. In just over half of the high-paying areas for office workers and one-third of those for plant workers, establishments were above average in size. Small establishment size characterized about half of the low-paying areas for both plant and office workers. Chart 13. Distribution of areas by average establishment size Office workers Number of areas Highpaying areas Lowpaying areas Maintenance and unskilled plant workers Highpaying areas Lowpaying areas Average establishment size: Under 190 190 to 280 280 or more http://fraser.stlouisfed.org/ 30 Federal Reserve Bank of St. Louis Unionization is more common in high-paying areas Unionization tends to raise pay levels. Workers in high-paying areas are more unionized than in low-paying ones. This is true for both office and plant workers, although the degree of unionization among plant workers is much greater. Chart 14. Distribution of areas by extent of labor-management contract coverage Office workers Number of areas Highpaying areas 11 Lowpaying areas 8 Percent of office workers unionized: Under 8 8 to 15 : 15 or more Maintenance and unskilled plant workers Highpaying areas Lowpaying areas Percent of plant workers unionized: Under 45 45 to 80 80 or more 31 Wage variation among areas is not associated with the relative presence or absence of manufacturing activity. . . http://fraser.stlouisfed.org/ 32 Federal Reserve Bank of St. Louis Chart 15. Distribution of areas by relative importance of manufacturing employment Office workers Number of areas Highpaying areas Lowpaying areas Maintenance and unskilled plant workers Under 40 40 to 60 60 or more 33 . but is associated with the kind of manufacturing industry in an area High-paying areas typically have a significant proportion of their manufacturing work force in high-paying industries; low-paying areas usually reflect more the presence of lowpaying manufacturing. Both kinds of manufacturing industry are present in virtually every area. Examples of high- and low-paying areas are shown below, along with measures of the relative importance of manufacturing in these areas and of the dominant kind of manufacturing industry: Percent of total employment in manufacturing Mix of manufacturing in d u stry1 High-paying areas: Toledo . . . Davenport 61 66 30 13 Low-paying areas: Greenville Providence 77 66 -4 9 -3 2 1 Employment in 5 high-paying manufacturing industries minus employment in 6 lowpaying manufacturing industries as a percent of total manufacturing employment. Chart 16. Distribution of areas by relative importance of highor low-paying manufacturing Office workers Number of areas Highpaying areas 5 2 Lowpaying areas 8 Maintenance and unskilled plant workers Highpaying areas Lowpaying areas Percent of manufacturing employment: High- minus low-paying manufacturing = + 16% or more \\\\\\\v High- minus low-paying manufacturing = + 4 to 16% | High- minus j low-paying manufacturing = + 3 to-50% 36 Part III. Profiles of High- and Low-Paying Manufacturing Industries Manufacturing industries employ 3 in every 10 of the Nation’s private nonfarm workers. The following charts portray some characteristics of high- and low-paying manufacturing industries. The industries, part of the Bureau’s industry wage survey program, represent nearly all kinds of manufacturing activity. In selecting industries for the following analysis, hourly earnings for production and related workers in 40 manufacturing industries were compared to the average for ail manufacturing in 1977. High-paying industries are those in which hourly earnings were at least 10 percent above the average; low-paying industries are those in which earnings were at least 10 percent below the average. Fourteen industries are in the high-paying group and 18 are in the low-paying group in the following charts, except for charts 18, 22, and 25, for which some data were not available. Chart 17. Pay relationships for production and related workers among 40 manufacturing industries, 1977 (All-manufacturing average = 100) Basic iron and steel Petroleum refining Motor vehicles Industrial chemicals Motor vehicle parts Cigarettes Shipbuilding Prepared meat Iron and steel foundries Pulp, paper, paperboard Glass containers Meat packing Flour milling Machinery Fabricated steel Synthetic fibers Paints and varnishes Glass (except containers) Fertilizer Nonferrous foundries Fluid milk Corrugated boxes Leather tanning Candy Men’s suits Structural clay Plastics Women’s suits Textile dyeing Cotton and synthetic textiles Wool textiles Women’s dresses Furniture Hosiery, except women’s Women’s hosiery Footwear Cigars Men’s trousers Work clothing Men’s shirts 37 http://fraser.stlouisfed.org/ 38 Federal Reserve Bank of St. Louis Capital intensity is lower in low-paying industries Capital intensity, measured by the book value of an industry’s plant and equipment assets per production worker, is typically low in low-paying industries, especially in apparel manufacturing. The ratio of capital to labor is high, in contrast, in some industries associated with “ high pay” factors such as high skill requirements and greater opportunities for productivity advance. It was highest by far in the petrochemical industries and also well above the all-manufacturing average in basic iron and steel, flour milling, and papermaking. Chart 18. Distribution of manufacturing industries by capital-to-labor ratio High-paying industries Low-paying industries 1 Book value per production worker: 1 More than p ... ■ $45,000 ■ "1 Between $15,000 [ J and $45,000 1 Less than 1 $15,000 Between $15,000 [ and $45,000 L Less than $15,000 Although not typical of most industries, concentration of shipments in a few large firms is more common in high-paying than in low-paying industries http://fraser.stlouisfed.org/ 40 Federal Reserve Bank of St. Louis A concentrated industry has been defined as one in which four firms account for half or more of the value of shipments. Few industries studied met this criterion, but, of those that did, four were high paying—cigarettes, glass containers, motor vehicles, and motor vehicle parts. Only one low-paying industry—cigars—fell within the definition Four low-paying industries—plastics, wood furniture, women’s dresses, and women’s suits—were characterized by the presence of numerous small firms, as was one high-paying industry—prepared meats. Chart 19. Distribution of manufacturing industries by extent of shipments concentrated in large firms High-paying industries Low-paying industries 1 Concentration ratios: Percent of shipments of 4 largest firms— 50 or more 1 16 to 50 15 or less □ 50 or more □ 16 to 50 □ http://fraser.stlouisfed.org/ 42 Reserve Bank of St. Louis Federal Large plants are more typical of high-paying industries In half of the high-paying industries, the average plant has at least 250 workers; in only one low-paying industry— cotton and synthetic textiles—is the average plant as large. However, small plants are typical in the high-paying flour milling and prepared meat products industries. Earnings in large establishments in an industry are higher, on average, than in small ones. Chart 20. Distribution of manufacturing industries by average plant size High-paying industries Low-paying industries 250 or more | 50 to 250 Under 50 43 Unionized workers are predominant in high-paying industries but are in the minority in most low-paying ones All but one high-paying industry—machinery—are at least three-fourths unionized; in contrast, only two low-paying industries—men’s and women’s suits and coats—are as heavily organized. Most low-paying industries, in fact, are primarily nonunion. Within each industry, workers in plants in which a majority are covered by collective bargaining agreements have a wage advantage over those who work in primarily nonunion plants. The size of this differential varies greatly and is larger in some low-paying industries than in high-paying ones. Chart 21. Distribution of manufacturing industries by extent of labor-management contract coverage High-paying industries Low-paying industries 75 or more 50 to 75 Under 50 Most workers in high-paying industries are located in metropolitan areas while a majority in many low-paying industries work in smaller communities http://fraser.stlouisfed.org/ 46 Reserve Bank of St. Louis Federal In all but one high-paying industry—paper—the work force is predominantly located in metropolitan areas; most workers in low-paying industries are in smaller communities, often in the South. In most industries, plants located in metropolitan areas have higher pay levels than those in smaller communities. Chart 22. Distribution of manufacturing industries by extent of location in metropolitan areas High-paying industries Low-paying industries 1 Percent of workers in metropolitan areas: 75 or more M M 50 to 75 Under 50 75 or more 50 to 75 ] Under 50 47 Low-paying industries have a much larger proportion of their work force in the South than do high-paying industries Low-paying industries commonly employ a majority of their workers in the South; most high-paying industries employ less than one-fourth of their workers in southern plants. Textiles and apparel dominate in the low-paying industries primarily located in southern areas. Among the high-paying group, only the cigarette and industrial chemical industries typically are located in the South. Within the same industry, workers in the South usually have lower earnings than workers elsewhere. Chart 23. Distribution of manufacturing industries by extent of location in the South High-paying industries Low-paying industries Percent of workers in southern plants: 50 or more H H H 25 to 50 Under 25 50 or more 25 to 50 Under 25 49 http://fraser.stlouisfed.org/ 50 Reserve Bank of St. Louis Federal Incentive pay systems are more prevalent in low-paying industries Piecework, bonus, and other incentive pay systems apply to a majority of workers in nearly half of the low-paying industries. Only in basic steel are such pay plans predominant in the high-paying group. Low-paying, incentive-oriented industries are highly labor intensive. (See chart 18.) Although “ incentive industries” are typically low-paying, incentive-paid workers usually earn more than their time-rated counterparts, regardless of industry. Chart 24. Distribution of manufacturing industries by incidence of incentive pay systems The range of employee earnings is wider in low-paying than in high-paying industries The earnings spread typically is highest in low-paying industries, where incentive pay systems prevail. In high-paying industries the spread is narrower primarily because single rates for an occupation— negotiated companywide or even industrywide, as in motor vehicles— are common. Other factors that influence earnings dispersion in an industry are the ways workers are distributed among regions and occupational groups. Chart 25. Distribution of manufacturing industries by relative dispersion of earnings High-paying industries Low-paying industries Percent of median earnings: High dispersion (middle range = 30% or more) Medium dispersion (middle range = 20-30%) | Low J dispersion (middle range = under 20%) □ High dispersion (middle range = 30% or more) Medium dispersion (middle range = 20-30%) 53 http://fraser.stlouisfed.org/ 54 Federal Reserve Bank of St. Louis Women are a much larger proportion of the production work force in low-paying industries Women usually make up a majority of the production workers in low-paying manufacturing industries but less than 15 percent in the high-paying group. Exceptions are leather tanning and structural clay products—two low-paying industries in which women constitute only one-fourth of the production work force. Chart 26. Distribution of manufacturing industries by proportion of women production workers High-paying industries 50 or more ] 15 to 50 | | Under 15 Relatively few industries have significant proportions of workers at or near the Federal minimum wage In the mid-1970’s, none of the high-paying industries had even 5 percent of their workers at or near the minimum wage, and only one-third of the low-paying industries had 10 percent or more at or near the minimum. Even in shirt manufacturing—the lowest paying industry studied—the proportion of workers within 5 cents of the $2 minimum in 1974 (27 percent) was much less than the proportion near the $1.25 minimum 10 years earlier (40 percent). Chart 27. Distribution of manufacturing industries by worker attachment to the Federal minimum wage, mid-1970’s High-paying industries Low-paying industries 14 Percent of workers at or near Federal m inim um : | | Under 5 10 or more 5 to 10 Under 5 Appendix A. BLS Occupational Wage Surveys Four major types of surveys are conducted currently in the Bureau of Labor Statistics Office of Wages and Industrial Relations to provide information on straight-time earnings by occupation: (1) Industry wage surveys in selected manufacturing and nonmanufacturing industries covering occupations peculiar to a particular industry; (2) area wage surveys in selected metropolitan areas (and, on a more limited scope, nonmetropolitan areas) covering occupations common to a broad spectrum of private industries; (3) a national survey of professional, administrative, technical, and clerical pay in private industry; and (4) municipal government wage surveys in large cities. Although differing in industrial, geographic, and occupational coverage, these surveys form an integrated program on occupational wages. A detailed description of these surveys is included in BLS Handbook of Methods, Bulletin 1910, chapters 19 and 20, and BLS Measures of Compensation, Bulletin 1941, chapters 2 and 3. Scope of surveys The scope of BLS occupational wage surveys as it relates to data depicted in this chartbook is summarized below. Industrial scope. The four types of surveys taken together cover at least part of every industry division, except agriculture, forestry, and fishing. Major exclusions of area wage surveys—construction, government, and mining—are covered either by the industry surveys or by the municipal government surveys. Geographic scope. Nationwide surveys are conducted for virtually all industries in manufacturing (with selected regional and area detail) and for the professional, administrative, technical, and clerical pay study. Area wage surveys are conducted in 70 Standard Metropolitan Statistical Areas selected on a probability basis to represent all such areas. Industry wage surveys limited to the union sector are carried out in 60 to 70 cities with at least 100,000 inhabitants. These cities also are selected on a probability basis to represent all cities of that size. Municipal government wage surveys are limited to the 26 U.S. cities with at least 500,000 inhabitants, with the addition of Atlanta. Minimum establishment size. To obtain appropriate accuracy at minimum cost, most BLS occupational wage surveys establish a minimum employment size for establishments to be within the scope of the study. In area wage surveys, establishments employing fewer than 50 workers are generally excluded (fewer than 100 workers in some large areas); for the white-collar salary survey, the minimum ranges from 100 to 250 depending on the industry division. Most industry wage surveys exclude establishments with fewer than 20 workers. No minimums are applicable to union and municipal wage surveys. Establishment characteristics Pay levels and pay relationships can be associated with many establishment characteristics, some significant and some marginal determinants of wage variation. Parts II and III highlight some of the most common of these—e.g. area and establishment employment size, establishment location, and the extent of unionization within an area or industry—covered by BLS occupational wage surveys. Nationwide industry wage surveys in manufacturing usually develop separate estimates by these characteristics, as well as by others such as type of product and/or process. Wage and salary measures The Bureau’s occupational wage surveys summarize a highly specific measure—the rate of pay for individual workers, excluding premiums for overtime and for work on weekends, holidays, and late shifts. Collecting data on individual workers permits the publication of the full earnings distribution and/or measures of central tendency, e.g. median and middle range, as illustrated in several charts in parts I and III. Union wage studies, unlike the other BLS occupational wage surveys, measure only the basic (minimum) wage rates found in labor-management agreements; they do not include individual worker earnings that may exceed /hese minimums. Analytical approaches A profile of wage-determining characteristics was developed in parts II and III for groupings of representative high- and low-paying areas and industries. Areas were selected, for example, based on their relative pay position for office workers and plant workers. High- or low-paying areas are those falling in the highest or lowest quartiles for (a) clerical and electronic data processing occupations and (b) maintenance and unskilled plant occupations. Earnings distributions were used in parts I and III to illustrate wage dispersion by occupation and industry as well as to focus on groups of workers at the lower end of the earnings array. Details on the preparation of individual charts are available upon request. Sources All except the following charts are based on data from the occupational wage survey program: Charts 1 and 3, Office of Current Employment Analysis, Bureau of Labor Statistics; chart 2, Division of General Compensation Structures, Bureau of Labor Statistics; chart 17, Office of Employment Structure and Trends, Bureau of Labor Statistics; charts 18 and 19, Bureau of the Census. Uses Bureau data are often used by public agencies concerned with wage policy. These data also are used extensively in the private sector in connection with wage and salary determinations by employers or in the collective bargaining process. To the extent that wages are a factor, survey data also are considered by employers in locating new facilities and in estimating costs. Occupational counselors often use information on relative pay levels and trends in connection with career guidance. Occupational wage surveys are not designed to supply mechanical answers to questions of pay policy. The applicability of survey results depends upon the selection and definition of industries, the geographic units for which estimates are developed, the occupations and associated items studied, and the reference dates of particular surveys. Depending upon specific needs, users may find it necessary to interpolate for occupations, industries, or areas not covered by the surveys. Appendix B. Selected Bibliography— Monthly Labor Review Articles on Occupational Wage Structures Baldwin, Stephen E., and Robert S. Daski. “ Occupational Pay Differences Among Metropolitan Areas,” May 1976, pp.29-35. Blackmore, Donald. “ Occupational Wage Relationships in Metro politan Areas,” December 1968, pp. 29-36. Brown, Gary D. “ Discrimination and Pay Disparities Between White Men and Women,” March 1978, pp. 17-22. Buckley, John E. “ Intraoccupational Wage Dispersion in Metropolitan Areas,” September 1969, pp. 24-29. _______________ “ Pay Differences Between Men and Women in the Same Job,” November 1971, pp. 36-40. Cox, John H. “Time and Incentive Pay Practices in Urban Areas,” December 1971, pp. 53-56. David, Lily Mary, and Toivo P. Kanninen. “Workers’ Wage in Con struction and Maintenance,” January 1968, pp. 46-49. Douty, H.M. “Wage Differentials: Forces and Counterforces,” March 1968, pp. 74-81. Field, Charles, and Richard L. Keller, “ How Salaries of Large Cities Compare With Industry and Federal Pay,” November 1976, pp. 23-28. Gavett, Thomas W., and Arthur Sackley. “ Blue-Collar/White-Collar Pay Trends: Analysis of Occupational Wage Differences,” June 1971, pp. 5-12. Houff, James N. “ Area Wages and Living Costs,” March 1969, pp. 43-46. http://fraser.stlouisfed.org/ 60 Federal Reserve Bank of St. Louis Kanninen, Toivo P. “ Coverage of Union Contracts in Metropolitan Areas,” July 1962, pp. 747-50. Mason, Sandra L. “ Comparing Union and Nonunion Wages in Manufacturing,” May 1971, pp. 20-26. Mobley, Thomas C. “ Use of BLS Survey Data in Wage Setting at GPO,” April 1970, pp. 66-68. Nilsen, Sigurd R. “ HowOccupational Mix Inflates Regional Pay Differentials,” February 1978, pp. 45-49. Ober, Harry. “ Occupational Wage Differentials, 1907-1947,” August 1948, pp. 127-34. Perloff, Stephen H. “Comparing Municipal Salaries with Industry and Federal Pay,” October 1971, pp. 46-50. Rose, Arthur. “Wage Differentials in the Building Trades,” October 1969, pp. 14-17. Schwenk, Albert, “ Earnings Differences in Machinery Manufacturing,” July 1974, pp. 38-47. _______________and Martin E. Personick. “ Analyzing Earnings Differentials in Industry Wage Surveys,” June 1974, pp. 56-59. Stelluto, George L. “ Report on Incentive Pay in Manufacturing Industries,” July 1969, pp. 49-53. _____________ “ Federal Pay Comparability: Facts to Temper The Debate,” June 1979, pp. 18-28. Zoltek, Robin, “ Sharp Rise in 1978 White-Collar Pay Characterized by Wide Variations,” November 1978, pp. 37-39. ☆ U .S. GOVERNMENT PRINTING OFFICE : 1 9 7 9 - 0 - 3 0 5 - 7 8 2 Bureau of Labor Statistics Regional Offices Region I 1603 JFK Federal Building Government Center Boston, Mass. 02203 Phone: (617)223-6761 Region II Suite 3400 1515 Broadway New York, N.Y. 10036 Phone: (212)944-3121 Region III 3535 Market Street P.O. Box 13309 Philadelphia, Pa. 19101 Phone: (215)596-1154 Region IV 1371 Peachtree Street, NE. Atlanta, Ga. 30309 Phone: (404)881-4418 Region V 9th Floor Federal Office Building 230 S. 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