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How shifting occupational composition has affected the real average wage: OES data from 2002-2007 reveal that an overall shift in employment towards occupations with lower mean wages hindered growth in the U.S. real average wage and that wage growth was concentrated in higher paying occupations; the data also show a shift in employment from the middle-paying occupations to the highest and lowest paying occupations.

Between November 2002 and May 2007, the cross-occupational average hourly wage in the United States increased by $2.46, from $17.10 to $19.56, or by about 14 percent, according to the Occupational Employment Statistics (OES) program. Adjusting the 2002 figure to May 2007 dollars (1) shows the real average hourly wage increased from $19.48 to $19.56, approximately a .41-percent increase.

There have been numerous studies and programs devoted to understanding this recent slow growth in the Real Average Wage (RAW). Many studies attribute slow wage growth to the increasing cost of employee benefits and health insurance--a phenomenon that results in employees' wages becoming a smaller part of their total compensation. (2) Other studies have analyzed how wage growth relates to income or wage inequality. (3) This article seeks to contribute towards an understanding of RAW growth by quantifying how changes in the occupational composition of U.S. employment have affected the average wage.

This article analyzes occupational wage and employment data from the OES program to understand how changes in occupations' wages and changes in occupations' levels of employment each have contributed to growth in the U.S. RAW. Overall wage growth could stem from increases in the mean wages of particular occupations, from a shift in employment towards occupations with higher wages, or from a combination of the two factors. This article's analysis of OES data from November 2002 to May 2007 finds that a shift in employment towards lower paying occupations hindered U.S. RAW growth, that increases in the real mean wages of individual occupations was the only factor that caused growth in the U.S. RAW, and that most of the average wage growth was due to increases in the wages of the highest paying occupations. This analysis also finds a shift in employment towards the highest paying and lowest paying occupations and away from middle-paying occupations. This article will show which occupations experienced growth and which experienced decline in real mean wages or in share of employment, and how these changes influenced the U.S. RAW. It will also reveal patterns of lower and higher paying occupations and of education and training categories, and give a brief analysis of changes in the average wages of U.S. States.

Methods

The OES program estimates national employment and wages by occupation and provides a data set for understanding changes in the average wage over the medium term. The OES program surveys 1.2 million business establishments, using 3 years of data collected in six semiannual panels to produce estimates for over 800 occupations. (4) Because of the survey methods employed, it can be difficult to use the data for time-series analysis, but this study mostly overcomes the issue because it compares wage and employment data 4 1/2 years apart and analyzes cross-industry wage and employment estimates that have been retabulated on the basis of a common coding system. (5) However, between November 2002 and May 2007, OES implemented refinements in occupational coding procedures that have caused some management workers to be moved from one occupation to another. Therefore, some results of this analysis may have been affected by this worker classification change and must be interpreted cautiously.

Change in the U.S. average wage may be due to changes in the mean wages of individual occupations or to shifts in employment among higher and lower paying occupations. An occupation's share of national employment is the percent of total jobs in the Nation for which the occupation accounts. This article uses a "shift-share analysis" of OES data to quantify the effect of changes in mean wages and the effect of changes in employment share on the U.S. RAW from November 2002 to May 2007. (6) OES data previously have been employed to examine the role of occupational composition, or the assortment of shares of national employment held by occupations, in the average wage differentials of U.S. States for one point in time. (7) In this article, change in the U.S. RAW over time is analyzed in a similar fashion, by decomposing the components of the change.

To calculate the U.S. RAW, each occupation's mean wage is multiplied by its share of national employment and then the products are summed. Change in the U.S. RAW from time t to time t+1 is found by subtracting the U.S. RAW at time t from the U.S. RAW at time t+1. Just as the U.S. RAW is influenced by the two factors of occupational mean wages and occupational composition, change in the U.S. RAW is influenced by the two factors of changes in occupational real mean wages and change in occupational composition. The decomposition of U.S. RAW change into these two factors, expressed in words and in mathematical notation, is

Change in U.S. RAW = National Wage Component + National Employment Component + National Residual Component

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]

where

j = {1, 2, ... J} index occupations

[DELTA] = Change from November 2002 to May 2007

[bar.W] = U.S. real average wage (in May 2007 dollars)

[[bar.W].sub.j] = Occupational real average wage (in May 2007 dollars)

N = National employment;

[N.sub.j] = Occupational employment

t = November 2002;

t+1 = May 2007

Table 1 shows the results and constituents of this analysis for the sum of all occupations and for major occupational groups (obtained by summing the results of all occupations within each group), and includes mean wages (in May 2007 dollars) and national employment shares in November 2002 and May 2007. Table 2 shows the results and constituents of this analysis for selected occupations.

The contribution of changes in the mean wages of occupations to the change in the U.S. RAW, represented by the first term in the aforementioned equation, is called the "wage component." The wage component of an occupation is found by holding the occupation's share of national employment constant while considering only the change in the mean wage of the occupation. The wage component is measured by multiplying the change in mean wage from November 2002 (in May 2007 dollars) to May 2007 by the occupation's share of November 2002 national employment.

A positive wage component indicates that the mean wage of an occupation or group of occupations increased, while a negative result indicates that the mean wage decreased. For example, as seen in table 2, the occupation of accountants and auditors has a wage component of 1 cent, found by multiplying the occupation's real mean wage increase of $1.23 by its November 2002 employment share of .70 percent. The national wage component is found by summing all occupations' wage components. A positive national wage component indicates that occupational mean wages grew overall, whereas a negative result indicates mean wages declined overall.

The contribution of changes in occupational composition to the change in the U.S. RAW, represented by the second term in the above equation, is called the "employment component." The employment component of an occupation is found by multiplying the occupation's change in employment share by its November 2002 mean wage (in May 2007 dollars). In other words, an occupation's mean wage is held constant and only the change in an occupation's employment share is taken into account. A positive employment component indicates that the employment share of an occupation or group of occupations increased, while a negative result indicates that its employment share declined. For example, as seen in table 1, the employment component of the production occupational group is -13 cents, found by multiplying the production group's November 2002 mean wage (in May 2007 dollars) of $15.43 by its employment share decline of .86 percentage point. A higher paying occupation will have an employment component of a greater degree than a lower paying occupation with the same change in employment share. The national employment component is found by summing all occupations' employment components. A positive national employment component indicates that higher paying occupations gained employment share relative to lower paying occupations, while a negative result indicates lower paying occupations gained employment share.

The final component of change in the U.S. RAW is the residual component, which captures the part of the change in the RAW that is not attributable solely to either the employment component or the wage component. The residual component is less meaningful to this study than the wage and employment components, because it is small and does not represent either the change in occupational composition alone or the changes in occupations' wages alone.

The sums of the three components for each occupation or occupational group are the figures in the "total of components" column of tables 1 and 2. The sum of all three components of all occupations is equal to the change in the U.S. RAW. In addition to decomposing U.S. RAW change into its three components, this article also seeks to show how the change in each occupation's mean wage and the change in its employment share have affected the U.S. RAW. The effect of the change in an occupation's mean wage on the U.S. RAW is captured through its wage component. Occupations whose real mean wages have increased will have positive wage components and increase the U.S. RAW, while occupations whose real mean wages have declined will have negative wage components and decrease the U.S. RAW. For example, accountants and auditors' real mean wage increase of $1.23 would have increased the U.S. RAW by 1 cent were employment shares to have remained constant, as seen in table 2.

Whereas the wage component indicates the effect that the change in an occupation's mean wage has on the U.S. RAW, the employment component does not indicate the effect that the change in an occupation's employment share has on the U.S. RAW. For example, a below-average paying occupation with a decline in employment share will have a negative employment component, but this decline in employment share will actually increase the U.S. RAW. There is, however, a calculation that can determine the effect that the change in one occupation's employment share has on the U.S. RAW, and the result of this calculation is referred to as the "employment effect." The employment effect takes into account both the change in an occupation's share of employment and the difference between the occupation's mean wage and the national mean wage. The overall employment effect of a group or category of occupations is calculated by summing the employment effects of all the occupations within that group or category. The national employment effect--that is, the employment effect of all occupations taken together--is found by summing the employment effects of all occupations in the United States, and it is equal to the national employment component. The occupational employment effect is shown in tables 1 and 2, and its equation is

[E.sub.j] = [DELTA][S.sub.j]

where

[E.sub.j] = {1, 2, ... J} index occupations

E = Occupational employment effect

[bar.w] = U.S. real average wage (in May 2007 dollars)

[[bar.w].sub.j] = Occupational real average wage (in May 2007 dollars)

[DELTA]S = Change in occupational employment share

t = November 2002

A positive employment effect indicates that the change in an occupation's employment share was a factor pushing the U.S. average wage upward. An occupation with a below-average mean wage and a decline in employment share will have a positive employment effect, as will an occupation with an above-average mean wage and an increase in employment share. Similarly, a negative employment effect indicates that the change in an occupation's employment share was a factor pushing the U.S. average wage downward. A negative employment effect is a result of either an occupation with a below-average mean wage gaining employment share or an occupation with an above-average mean wage losing employment share. For example, computer programmers' above-average November 2002 wage of $34.88 and their loss of .06 percentage point in employment share from November 2002 to May 2007 resulted in an employment effect of -1 cent on the U.S. RAW.

Results

The U.S real average wage increase of 8 cents was the combined result of a -11 cent employment component, indicating an employment shift toward lower paying jobs; a 22 cent wage component, indicating that the mean wages of occupations increased overall; and a -3 cent residual component.

The national wage component. The national wage component was 22 cents, indicating the U.S. RAW would have increased by 22 cents, or 1.1 percent, if the employment shares of occupations had remained constant. The national wage component more than offset the national employment component of -11 cents, and it alone propelled the U.S. RAW to positive growth. So, while the mean wages of occupations increased overall, growth in the U.S. RAW was hindered because lower paying occupations gained employment share relative to higher paying occupations.

The positive wage component indicates either that a majority of employment was in occupations with mean wage growth or that those occupations with mean wage growth had a greater degree of change in wage than did occupations whose mean wages declined. In fact, in November 2002 only about 41 percent of employment was in occupations whose mean wage was to grow through May 2007, and the remaining 59 percent was in occupations whose mean wage was to decrease or remain unchanged during the same period. Therefore, the positive wage component was driven by occupations with growth in the mean wage having a greater degree of change than occupations with a decline in the mean wage.

The influences of occupational wage components. Overall, about 51 percent of occupations, making up about 41 percent of employment, had positive wage components. The wage components of occupations depend on their employment shares in November 2002 and on the change in their mean wage from November 2002 to May 2007. An occupation with a higher employment share or greater growth in the mean wage will have a larger wage component. Conversely, an occupation with a lower employment share or lesser wage growth will have a smaller wage component. Those occupations with the largest wage components are generally higher paying and are mostly from the management, computer and mathematical science, healthcare practitioner and technical, and sales and related groups. As seen in table 2, registered nurses had one of the highest wage components, 5 cents, because the occupation had both strong real mean wage growth of $2.74 and a high November 2002 employment share of 1.76 percent. General office clerks, heavy and tractor-trailer truck drivers, and stock clerks and order fillers all had some of the most negative wage components, at -1 cent each, because of the occupations' high employment shares coupled with declines in their real mean wages. The management occupational group and the healthcare practitioner and technical occupational group had the largest wage components of all occupational groups, as shown in table 1. Production occupations and office and administrative support occupations had the most negative wage components.

The national employment component. The shifting occupational composition of the United States would have decreased the RAW by 11 cents, or .6 percent, had occupational mean wages remained constant. In other words, if the mean wages of all occupations had remained unchanged, changes in the distribution of employment among occupations would have decreased the U.S. RAW by 11 cents. This negative employment component indicates that lower paying occupations gained employment share relative to higher paying occupations. In other words, lower paying occupations had faster employment growth than higher paying occupations, accounting for a greater share of total employment in May 2007 than in November 2002. Because the national employment component aggregates the employment components of all occupations, it signifies a trend that takes all occupations into account and does not necessarily indicate that only the lowest paying occupations gained employment share or that only the highest paying occupations lost employment share. Occupations that gained and lost employment share will be further explored later in this article.

The influences of occupational employment effects. Whereas the national employment component has documented the shift in employment share from higher paying to lower paying occupations, the employment effect of an occupation shows precisely the degree and direction that the occupation's change in employment share has had on the U.S. RAW. Overall, 42 percent of occupations, making up 46 percent of employment, had a negative or zero employment effect on the U.S. RAW. For example, the occupation of combined food preparation and serving workers, including fast food, has one of the most negative employment effects, -4 cents, on the U.S. RAW because this below-average paying occupation increased in employment share from 1.57 percent to 1.94 percent. Major occupational groups that had negative employment effects on the U.S. RAW include the healthcare support, food preparation and serving related, and personal care and service occupational groups.

Still, most occupations had positive employment effects on the U.S. RAW. Many of those occupations with the greatest positive employment effects were from the business and financial operations group or computer and mathematical science group, as many of these above-average-paying occupations gained employment share. For example, the occupation of computer software engineers, applications had a positive employment effect of 2 cents on the U.S. RAW, as this high-paying occupation increased in employment share from .28 to .37 percent.

Grouping occupations by mean wage. Besides identifying how each occupation's mean wage and change in employment share affected the U.S. RAW, broader trends in the U.S. labor market can be understood through grouping occupations on the basis of mean wage. Doing so will illustrate how occupations with higher and lower mean wages experienced changes in mean wage and employment as a group, and how these changes influenced the U.S. RAW. Table 3 distributes occupations into four categories that had roughly equal shares of the Nation's employment in 2002. The categories vary by their 2002 mean wages, and they are labeled as follows: "highest paying" (mean wage over $24.11); "average paying" (mean wage of $15.68 to $24.11), a range within which the U.S. RAW of $19.48 falls; "lower paying" (mean wage of $11.80 to $15.67); and "lowest paying" (mean wage below $11.80). Table 3 also presents employment shares in November 2002 and May 2007, employment components, wage components, residual components, and employment effects for each of the four categories of pay.

Table 4 displays the occupational makeup of each pay category. The highest paying category consists mainly of management; business and financial operations; computer and mathematical science; life, physical, and social science; architecture and engineering; healthcare practitioner and technical; and education, training, and library occupations. However, some occupations from other groups also are included, such as power plant operators from the production group. The average-paying category consists of occupations from every occupational group. Still, accounting for most of this category of pay are occupations in the office and administrative support; arts, design, entertainment, sports, and media; construction and extraction; installation, maintenance, and repair; production; and transportation and material moving occupational groups. Most occupations within the lower paying category are in the office and administrative support; production; and construction and extraction occupational groups. The lowest paying category contains many occupations from the personal care and service; food preparation and serving related; and production occupational groups.

Wage components by pay category. Analyzing the wage components of each category of pay as a whole illustrates how mean wage growth varied by category. When the wage components of occupations within each category are summed, only the highest paying category has a positive wage component, while the three other pay categories have negative wage components. When occupations are analyzed in the context of these four categories, only the highest paying category would have increased the U.S. RAW--by 35 cents--from November 2002 to May 2007 had employment shares remained constant during that period. The lower paying category has the most negative wage component, -6 cents, while the lowest paying category has a wage component of -3 cents and the average-paying category has a wage component of -4 cents. Breaking out occupations into these pay categories shows that the category of highest paying occupations is the largest factor in creating a positive national positive wage component of 22 cents.

The highest paying category's wage component of 35 cents indicates either that occupations whose mean wage increased make up the majority of employment in this category or that those occupations whose mean wage grew had a greater degree of wage change than did those whose mean wage declined or remained unchanged. The analysis shows that in fact about 77 percent of November 2002 employment in this category was in occupations with growth in the mean wage.

For each of the other three pay categories, all of which have negative wage components, the majority of employment was in occupations with declines in the mean wage. About 62 percent of November 2002 employment within the average-paying category, 79 percent of employment from that time within the lower paying category, and 73 percent of employment from that time within the lowest paying category was in occupations with a decline in the mean wage or an unchanged mean wage from November 2002 to May 2007. Thus, most employment in the average-, lower, and lowest paying categories was in occupations with decline or no growth in mean wages, whereas the majority of employment in the highest paying category was in occupations whose mean wage increased.

Employment share by pay category. One can see from the negative national employment component that lower paying occupations gained employment share overall, but breaking out occupations into pay categories reveals that there also was an employment shift from the middle two pay categories to the lowest and highest paying categories. The lowest paying category had the largest increase in employment share, .60 percentage point, while the highest paying category increased employment share by about half that (.33 percentage point). The average-paying category lost .20 percentage point of its share of employment, and the lower paying category lost the greatest employment share, with a decrease of .74 percentage point. This same "polarization" of the U.S. labor market was studied by David H. Autor, Lawrence F. Katz, and Melissa S. Kearney in the 1990s; they found "employment polarizing into high-wage and low-wage jobs at the expense of traditional middle-skill jobs." (8)

Employment components and employment effects by pay category. Analyzing the overall employment effect of each category of pay reveals how shifts in employment share have influenced the U.S. RAW. The lowest paying category's gain of .60 percentage point in employment share resulted in an employment effect of -6 cents on the RAW. Still, the employment component of the category is positive, at 5 cents, showing that within the lowest paying category, occupations with higher mean wages gained employment share. Meanwhile, the lower paying category lost .74 percentage point of employment share, causing a positive employment effect of 4 cents on the U.S. RAW.

Within the lower paying category, however, employment share shifted away from higher paying occupations, evidenced by the category's employment component of -10 cents. The average-paying category had an employment effect of about 1 cent on the U.S. RAW, although its employment component of -3 cents indicates that among the occupations within the category, employment share shifted slightly towards lower paying occupations. Because the highest paying category contains many management occupations, the results of this analysis for the highest paying category should be interpreted with caution.

Examination of employment trends within the four pay categories shows that the negative national employment component is explained by the trend of an overall shift in employment towards the lowest paying category. There was also a shift in employment towards occupations with lower mean wages within two or three of the pay categories.

Grouping occupations by change in mean wage. In addition to grouping occupations on the basis of their November 2002 mean wage, another way to allow hidden patterns to emerge is to separate occupations into those with growth in the mean wage and those with a decline in the mean wage or an unchanged mean wage. Table 3 displays employment components, wage components, and changes in employment share for occupations whose mean wage increased from November 2002 to May 2007 and for occupations whose mean wage decreased or remained unchanged during the same period. As described earlier, in November 2002 only about 41 percent of employment was in occupations whose mean wage increased during the 41/2-year period, and the remaining 59 percent was in occupations whose mean wage declined or remain unchanged during that time. The highest paying category accounted for about 48 percent of the November 2002 employment of occupations whose mean wage was to grow through May 2007. So, not only was most employment in the highest paying category in occupations that experienced growth in the mean wage, as discussed earlier, but the highest paying category accounted for almost half of employment among occupations whose mean wage increased. The average-paying category made up about 24 percent of employment in occupations whose mean wage increased, and the remaining 29 percent came from the lower paying and lowest paying categories.

Among occupations for which the mean wage declined or remained the same from November 2002 to May 2007, the lowest and lower paying categories made up 63 percent of November 2002 employment. The average-paying category made up 27 percent of employment among the same occupations, and the highest paying category accounted for the remaining 10 percent. This finding further explains the strong positive wage components of the highest paying category and the negative wage components of the three other categories.

A final underlying trend behind the .41-percent growth of the RAW was faster overall growth in employment among occupations whose mean wage declined or did not change, in comparison with occupations whose mean wage increased. Overall, those occupations whose mean wage decreased or remained the same gained .22 percentage point of employment share. Most of the loss in employment share from occupations with growth in the mean wage came from the average-paying, lower paying and the lowest paying categories, which lost a combined .49 percentage point of employment share. The highest paying occupations with mean wage growth gained .28 percentage point of employment share. In contrast, the lowest paying occupations whose mean wage decreased or remained the same gained .71 percentage point of employment share; the lower paying and average-paying categories whose mean wage declined or stayed the same lost employment share. As mentioned earlier in this article, the lowest paying and highest paying categories were the two pay categories that gained employment share. Categorizing occupations by change in mean wage reveals that for the lowest paying category, most of the occupations that gained employment share were occupations with a decline or no change in the mean wage, and that for the highest paying category, most of the occupations that gained employment share were occupations whose mean wage increased.

Additional applications

There are many potential additional applications for this article's analysis of the effects of changing employment shares and of changing occupational composition on change in the U.S. RAW. Two applications that will be briefly explored in this section are patterns among education and training categories and an analysis of the average wages of U.S. States.

Education and training categories. Just as this article groups occupations on the basis of their mean wage to demonstrate trends among lower and higher paying occupations, it also groups occupations into education and training categories to reveal trends among occupations associated with greater or lesser education and training.

The BLS Employment Projections program assigns each occupation to 1 of 11 education and training categories, which range from "short-term on-the-job training" to "first professional degree." The most common source(s) and level of education for workers in a given occupation serves as the basis for placing the occupation in a particular category. Table 5 displays the employment shares, wage components, and employment effects of these categories of occupations.

The wage components of the three on-the-job training categories are negative, and the wage components of most of the eight other education and training categories are positive. The moderate-term on-the-job training and short-term on-the-job training categories both have the most negative wage components, -7 cents, and the long-term on-the-job training category has a wage component of -1 cent. Occupations in the category of bachelor's or higher degree, plus work experience had the greatest overall wage component, 17 cents, even though these occupations made up only 5 percent of employment in November 2002. This shows that this category had the greatest increase in real average wage of all the education and training categories. The categories of bachelor's degree, associate degree, and work experience in a related occupation each had relatively high wage components of about 6 cents.

Regarding shifts in employment share among the education and training categories, those occupations in the category of bachelor's degree gained the most employment share, .95 percentage point. Other education and training categories that made slight gains in employment share are long-term on-the-job training, short-term on-the-job training, associate degree, master's degree, doctoral degree, and first professional degree. The categories of work experience in a related occupation and moderate-term on-the-job training each lost about .34 percentage point of employment share, and the category of postsecondary vocational award decreased in employment share by .07 percentage point. Autor, Katz, and Kearney, observed more rapid employment growth in the bottom end of the education distribution than in the middle" in the 1990s, but this article's findings from the 2000s indicate that the trend has changed.

Wage analysis by State. Just as OES data are used to analyze the U.S. RAW, they also can be used to analyze the components of changes in the average wages of U.S. States. The wage component, employment component, residual component, and total component for each State and the District of Columbia are shown in table 6. The patterns in employment and mean wages found at the national level also occur in most States. For example, the overall shift toward occupations with lower mean wages is found in 32 States. The States with the most negative employment components--that is, the most pronounced shift in employment toward occupations with lower mean wages--are Pennsylvania, New Mexico, Missouri, West Virginia, and Nebraska. The five places with the greatest positive employment components, or the most pronounced employment shift towards occupations with higher mean wages, are New York; California; New Jersey; Washington, DC; and Wyoming.

Most States have a positive wage component (35 States and the District of Columbia), but 15 States have negative occupational wage components, indicating that occupational mean wages declined overall in the State. The States with the most negative wage components are Georgia, with wage component of -32 cents; Connecticut, with wage component of -31 cents; and Michigan, with a wage component of -30 cents. The places with the greatest positive wage components are Maryland; Illinois; Washington, DC; and Virginia. Some States that have positive wage components still had a decline in the average wage--Pennsylvania being one example--because the negative employment component is greater in degree than the wage component. As seen in table 6, wage components and employment components differ greatly by State, with some States having an employment component and a wage component that are both negative, such as Kansas and Indiana, and some States having an employment component and wage component that are both positive, such as Vermont and California.

USING OES DATA TO UNDERSTAND COMPONENTS of U.S. real average wage growth from November 2002 to May 2007 reveals many trends in occupational mean wages and employment shares. The analysis revealed that the increase of 8 cents in the U.S. RAW could be decomposed into an employment component of -11 cents, a wage component of 22 cents, and a residual component of -3 cents. These components indicate that overall, the mean wages of individual occupations grew faster than is evident from the national average wage growth statistic because the national average wage was suppressed by occupations with lower mean wages gaining employment share. Another finding was that a majority of employment was in occupations that experienced a decline or no change in the mean wage, and the group of occupations whose mean wage decreased or remained the same made a slight gain in employment share; these two phenomena also hampered the growth of the U.S. RAW.

Grouping occupations by mean wage revealed that the lowest, lower, and average-paying categories of occupations each have overall negative wage components, indicating that taken together, occupations within each of these categories experienced a decline in their mean wage. An additional finding of this article was a shift in employment from the two middle-paying categories of occupations to the lowest and highest paying categories. The lowest paying category increased the most in employment share, .60 percentage point, and most of this gain was made by occupations whose mean wage decreased or did not change. The pay categories also revealed that the increase in the U.S. RAW is due mostly to growth in the mean wages of occupations in the highest paying category, which had a wage component of 35 cents and made up 48 percent of employment among occupations whose mean wage increased from November 2002 to May 2007.

Notes

(1) The adjustment for inflation was made using the BLS Consumer Price Index for Urban Wage Earners and Clerical Workers.

(2) Katherine Baicker and Amitabh Chandra, "The Labor Market Effects Of Rising Health Insurance Premiums," Journal of Labor Economics, July 2006, pp. 609-34.

(3) John Jones, "What do OES data have to say about increasing wage inequality?" Monthly Labor Review, June 2009, pp. 39-49.

(4) OES statistics cover part-time and full-time wage and salary workers, and do not cover the self-employed, owners and partners in unincorporated firms, household workers, or unpaid family workers.

(5) The common coding system is the 2002 OES occupational coding structure.

(6) Mean wages for November 2002 have been adjusted for inflation to May 2007 dollars. All wages are discussed in terms of May 2007 dollars.

(7) Patrick Kilcoyne, "The Role of Occupational Composition in State Wage Differentials," Occupational Employment and Wages, May 2005, Bulletin 2585 (Bureau of Labor Statistics, May 2007).

(8) David H. Autor, Lawrence F. Katz, and Melissa S. Kearney, "The Polarization of the U.S. Labor Market," American Economic Review, May 2006, pp. 189-194.

Rebecca Keller is an economist in the Office of Employment and Unemployment Statistics, Bureau of Labor Statistics. Email: keller.rebecca@bls.gov
Table 1
Mean hourly wage, employment share, and components of change
in the U.S. real average wage, by occupational group, Nov.
2002-May 2007

        Occupational group          2002         2007        Change
                                    mean         mean       in real
                                   wage,         wage         mean
                                   in May                   wage (1)
                                    2007
                                  dollars

    Total, all occupations         $19.48       $19.56        $0.08
Management occupations (2)          43.19        46.27         3.08
Business and financial
  operations occupations            29.20        30.07          .87
Computer and mathematical
  science occupations               33.75        34.71          .96
Architecture and engineering
  occupations                       31.77        33.11         1.34
Life, physical, and social
  science occupations               28.69        29.79         1.11
Community and social services
  occupations                       18.96        19.49          .53
Legal occupations                   42.35        42.53          .18
Education, training, and
  library occupations               22.01        22.41          .40
Arts, design, entertainment,
  sports, and media
  occupations                       22.81        23.27          .46
Healthcare practitioner
  and technical occupations         29.75        31.28         1.53
Healthcare support
  occupations                       12.27        12.31          .03
Protective service
  occupations                       18.25        18.84          .58
Food preparation and serving
  related occupations                9.40         9.34         -.06
Building and grounds
  cleaning and maintenance
  occupations                       11.44        11.33         -.11
Personal care and service
  occupations                       11.70        11.53         -.17
Sales and related
  occupations                       16.76        16.94          .18
Office and administrative
  support occupations               15.28        15.00         -.28
Farming, fishing, and
  forestry occupations              11.05        10.89         -.16
Construction and extraction
  occupations                       19.93        19.53         -.40
Installation, maintenance,
  and repair occupations            19.59        19.20         -.39
Production occupations              15.43        15.05         -.38
Transportation and material
  moving occupations                14.93        14.75         -.18

        Occupational group          2002         2007        Change
                                 employment   employment       in
                                   share        share      employment
                                                           share (1)

    Total, all occupations        $100.00      $100.00          --
Management occupations (2)           5.56         4.47        -1.09
Business and financial
  operations occupations             3.74         4.48          .74
Computer and mathematical
  science occupations                2.17         2.38          .20
Architecture and engineering
  occupations                        1.89         1.85         -.04
Life, physical, and social
  science occupations                 .85          .93          .09
Community and social services
  occupations                        1.24         1.33          .10
Legal occupations                     .73          .74          .01
Education, training, and
  library occupations                6.09         6.19          .10
Arts, design, entertainment,
  sports, and media
  occupations                        1.18         1.31          .13
Healthcare practitioner
  and technical occupations          4.87         5.12          .25
Healthcare support
  occupations                        2.49         2.70          .21
Protective service
  occupations                        2.35         2.30         -.05
Food preparation and serving
  related occupations                7.89         8.39          .50
Building and grounds
  cleaning and maintenance
  occupations                        3.34         3.28         -.06
Personal care and service
  occupations                        2.29         2.49          .20
Sales and related
  occupations                       10.46        10.67          .21
Office and administrative
  support occupations               17.84        17.32         -.52
Farming, fishing, and
  forestry occupations                .35          .33         -.02
Construction and extraction
  occupations                        4.80         4.99          .19
Installation, maintenance,
  and repair occupations             4.09         4.01         -.08
Production occupations               8.41         7.55         -.86
Transportation and material
  moving occupations                 7.37         7.17         -.20

        Occupational group          Wage      Employment    Residual
                                 component    component    component

    Total, all occupations          $0.22       $-0.11       $-0.03
Management occupations (2)            .20         -.49         -.04
Business and financial
  operations occupations              .02          .22          .00
Computer and mathematical
  science occupations                 .01          .08          .00
Architecture and engineering
  occupations                         .02         -.01          .00
Life, physical, and social
  science occupations                 .01          .03          .00
Community and social services
  occupations                         .01          .02          .00
Legal occupations                     .00          .01          .00
Education, training, and
  library occupations                 .01          .03          .00
Arts, design, entertainment,
  sports, and media
  occupations                         .00          .03          .00
Healthcare practitioner
  and technical occupations           .06          .08          .01
Healthcare support
  occupations                         .00          .02          .00
Protective service
  occupations                         .02         -.01          .00
Food preparation and serving
  related occupations                 .00          .04          .00
Building and grounds
  cleaning and maintenance
  occupations                         .00         -.01          .00
Personal care and service
  occupations                         .00          .02          .00
Sales and related
  occupations                         .02          .04          .00
Office and administrative
  support occupations                -.04         -.09          .00
Farming, fishing, and
  forestry occupations                .00          .00          .00
Construction and extraction
  occupations                        -.02          .04          .00
Installation, maintenance,
  and repair occupations             -.02         -.02          .00
Production occupations               -.03         -.13          .00
Transportation and material
  moving occupations                 -.02         -.02          .00

        Occupational group         Total      Employment
                                  of three      effect
                                 components
                                    (1)

    Total, all occupations          $0.08       $-0.11
Management occupations (2)           -.33         -.28
Business and financial
  operations occupations              .25          .08
Computer and mathematical
  science occupations                 .09          .04
Architecture and engineering
  occupations                         .01          .00
Life, physical, and social
  science occupations                 .04          .01
Community and social services
  occupations                         .03          .00
Legal occupations                     .01          .01
Education, training, and
  library occupations                 .05          .01
Arts, design, entertainment,
  sports, and media
  occupations                         .04          .01
Healthcare practitioner
  and technical occupations           .15          .03
Healthcare support
  occupations                         .03         -.02
Protective service
  occupations                         .00          .00
Food preparation and serving
  related occupations                 .04         -.05
Building and grounds
  cleaning and maintenance
  occupations                        -.01          .00
Personal care and service
  occupations                         .02         -.02
Sales and related
  occupations                         .05          .00
Office and administrative
  support occupations                -.13          .01
Farming, fishing, and
  forestry occupations                .00          .00
Construction and extraction
  occupations                         .02          .00
Installation, maintenance,
  and repair occupations             -.03          .00
Production occupations               -.16          .04
Transportation and material
  moving occupations                 -.04          .02

(1) Numbers may not add precisely because of rounding.

(2) The results for management occupations should be interpreted
with caution because they may be affected by refinements in
occupational coding procedures.

Table 2. Mean hourly wage, employment share, and components of
change in the U.S. real average wage, for selected occupations,
Nov. 2002-May 2007

      Occupation title           2002         2007        Change
                                 mean         mean       in real
                                wage,         wage         mean
                                in May                   wage (1)
                                 2007
                               dollars

  Total, all occupations        19.48        19.56         0.08

Selected occupations with large positive wage
  components (sorted by wage component) (2)

Registered nurses               27.29        30.04         2.74
Pharmacists                     41.15        47.58         6.43
Sales representatives,
  wholesale
  and manufacturing,
  except technical
  and scientific
  products                      28.00        28.94          .94
Accountants
  and auditors                  29.15        30.37         1.23
First-line supervisors/
  managers of non-
  retail sales workers          35.19        37.58         2.39
Sales representatives,
  wholesale
  and manufacturing,
  technical and scientific
  products                      34.75        36.76         2.01
Licensed practical
  and licensed vocational
  nurses                        17.69        18.72         1.03
Waiters and waitresses           8.64         8.93          .29
Computer software
  engineers, systems
  software                      41.53        43.65         2.12
Executive secretaries
  and administrative
  assistants                    19.19        19.57          .38

Selected occupations with large negative wage
  components (sorted by wage component) (2)

Office clerks, general          12.89        12.48         -.41
Truck drivers, heavy
  and tractor-trailer           18.81        18.06         -.76
Stock clerks
  and order fillers             11.63        10.93         -.71
Cashiers                         9.14         8.84         -.30
Customer service
  representatives               15.46        14.93         -.54
Team assemblers                 13.53        12.72         -.81
Securities,
  commodities,
  and financial services
  sales agents                  46.94        43.49        -3.44
Secretaries, except
  legal, medical,
  and executive                 14.45        14.04         -.42
Computer support
  specialists                   23.18        21.78        -1.40
Construction laborers           15.64        14.88         -.76

Selected occupations with large positive employment
  effects (sorted by employment effect) (2)

Computer software
  engineers,
  applications                  40.41        41.18          .77
Computer software
  engineers, systems
  software                      41.53        43.65         2.12
Accountants
  and auditors                  29.15        30.37         1.23
Packers and packagers,
  hand                           9.94         9.77         -.17
Management analysts             38.42        38.68          .26
Market research
  analysts                      33.00        32.20         -.80
Personal financial
  advisors                      42.96        42.89         -.07
Loan officers                   28.56        30.10         1.54
Network systems
  and data
  communications
  analysts                      33.62        34.02          .41
Financial analysts              36.79        39.28         2.50

Selected occupations with large negative employment
  effects (sorted by employment effect) (2)

Combined food pre-
  paration and serving
  workers, including
  fast food                      8.30         8.03         -.27
Retail salespersons             11.91        11.79         -.12
Home health aides               10.43        10.03         -.40
Waiters and waitresses           8.64         8.93          .29
Computer programmers.           34.88        34.62         -.26
Personal and home care
  aides                          9.20         9.11         -.09
Cooks, restaurant               10.87        10.56         -.31
First-line supervisors/
  managers of non-retail
  sales workers                 35.19        37.58         2.39
Stock clerks and order
  fillers                       11.63        10.93         -.71
Customer service
  representatives               15.46        14.93         -.54

      Occupation title           2002         2007        Change
                              employment   employment       in
                                share        share      employment
                                                        share (1)

  Total, all occupations       100.00       100.00          --

Selected occupations with large positive wage
  components (sorted by wage component) (2)

Registered nurses                1.76         1.84          .08
Pharmacists                       .17          .19          .02
Sales representatives,
  wholesale
  and manufacturing,
  except technical
  and scientific
  products                       1.08         1.12          .04
Accountants
  and auditors                    .70          .83          .13
First-line supervisors/
  managers of non-
  retail sales workers            .26          .21         -.05
Sales representatives,
  wholesale
  and manufacturing,
  technical and scientific
  products                        .29          .30          .01
Licensed practical
  and licensed vocational
  nurses                          .54          .54         -.01
Waiters and waitresses           1.64         1.75          .12
Computer software
  engineers, systems
  software                        .20          .26          .06
Executive secretaries
  and administrative
  assistants                     1.10         1.13          .03

Selected occupations with large negative wage
  components (sorted by wage component) (2)

Office clerks, general           2.24         2.22         -.02
Truck drivers, heavy
  and tractor-trailer            1.19         1.26          .07
Stock clerks
  and order fillers              1.26         1.35          .09
Cashiers                         2.65         2.64         -.01
Customer service
  representatives                1.45         1.63          .18
Team assemblers                   .89          .87         -.02
Securities,
  commodities,
  and financial services
  sales agents                    .20          .20          .00
Secretaries, except
  legal, medical,
  and executive                  1.41         1.36         -.04
Computer support
  specialists                     .38          .39          .02
Construction laborers             .65          .78          .13

Selected occupations with large positive employment
  effects (sorted by employment effect) (2)

Computer software
  engineers,
  applications                    .28          .37          .09
Computer software
  engineers, systems
  software                        .20          .26          .06
Accountants
  and auditors                    .70          .83          .13
Packers and packagers,
  hand                            .73          .59         -.13
Management analysts               .31          .37          .06
Market research
  analysts                        .10          .16          .07
Personal financial
  advisors                        .06          .10          .04
Loan officers                     .17          .27          .09
Network systems
  and data
  communications
  analysts                        .10          .16          .06
Financial analysts                .13          .17          .04

Selected occupations with large negative employment
  effects (sorted by employment effect) (2)

Combined food pre-
  paration and serving
  workers, including
  fast food                      1.57         1.94          .37
Retail salespersons              3.05         3.30          .24
Home health aides                 .45          .62          .17
Waiters and waitresses           1.64         1.75          .12
Computer programmers.             .36          .29         -.06
Personal and home care
  aides                           .35          .44          .09
Cooks, restaurant                 .56          .65          .09
First-line supervisors/
  managers of non-retail
  sales workers                   .26          .21         -.05
Stock clerks and order
  fillers                        1.26         1.35          .09
Customer service
  representatives                1.45         1.63          .18

      Occupation title           Wage      Employment    Residual
                              component    component    component

  Total, all occupations         0.22       $-0.11       $-0.03

Selected occupations with large positive wage
  components (sorted by wage component) (2)

Registered nurses                 .05          .02          .00
Pharmacists                       .01          .01          .00
Sales representatives,
  wholesale
  and manufacturing,
  except technical
  and scientific
  products                        .01          .01          .00
Accountants
  and auditors                    .01          .04          .00
First-line supervisors/
  managers of non-
  retail sales workers            .01         -.02          .00
Sales representatives,
  wholesale
  and manufacturing,
  technical and scientific
  products                        .01          .00          .00
Licensed practical
  and licensed vocational
  nurses                          .01          .00          .00
Waiters and waitresses            .00          .01          .00
Computer software
  engineers, systems
  software                        .00          .02          .00
Executive secretaries
  and administrative
  assistants                      .00          .00          .00

Selected occupations with large negative wage
  components (sorted by wage component) (2)

Office clerks, general           -.01          .00          .00
Truck drivers, heavy
  and tractor-trailer            -.01          .01          .00
Stock clerks
  and order fillers              -.01          .01          .00
Cashiers                         -.01          .00          .00
Customer service
  representatives                -.01          .03          .00
Team assemblers                  -.01          .00          .00
Securities,
  commodities,
  and financial services
  sales agents                   -.01          .00          .00
Secretaries, except
  legal, medical,
  and executive                  -.01         -.01          .00
Computer support
  specialists                    -.01          .00          .00
Construction laborers             .00          .02          .00

Selected occupations with large positive employment
  effects (sorted by employment effect) (2)

Computer software
  engineers,
  applications                    .00          .04          .00
Computer software
  engineers, systems
  software                        .00          .02          .00
Accountants
  and auditors                    .01          .04          .00
Packers and packagers,
  hand                            .00         -.01          .00
Management analysts               .00          .02          .00
Market research
  analysts                        .00          .02          .00
Personal financial
  advisors                        .00          .02          .00
Loan officers                     .00          .03          .00
Network systems
  and data
  communications
  analysts                        .00          .02          .00
Financial analysts                .00          .02          .00

Selected occupations with large negative employment
  effects (sorted by employment effect) (2)

Combined food pre-
  paration and serving
  workers, including
  fast food                       .00          .03          .00
Retail salespersons               .00          .03          .00
Home health aides                 .00          .02          .00
Waiters and waitresses            .00          .01          .00
Computer programmers.             .00         -.02          .00
Personal and home care
  aides                           .00          .01          .00
Cooks, restaurant                 .00          .01          .00
First-line supervisors/
  managers of non-retail
  sales workers                   .01         -.02          .00
Stock clerks and order
  fillers                        -.01          .01          .00
Customer service
  representatives                -.01          .03          .00

      Occupation title          Total      Employment
                                  of         effect
                              components
                                 (1)

  Total, all occupations         0.08       $-0.11

Selected occupations with large positive wage
  components (sorted by wage component) (2)

Registered nurses                 .07          .01
Pharmacists                       .02          .00
Sales representatives,
  wholesale
  and manufacturing,
  except technical
  and scientific
  products                        .02          .00
Accountants
  and auditors                    .05          .01
First-line supervisors/
  managers of non-
  retail sales workers           -.01         -.01
Sales representatives,
  wholesale
  and manufacturing,
  technical and scientific
  products                        .01          .00
Licensed practical
  and licensed vocational
  nurses                          .00          .00
Waiters and waitresses            .02         -.01
Computer software
  engineers, systems
  software                        .03          .01
Executive secretaries
  and administrative
  assistants                      .01          .00

Selected occupations with large negative wage
  components (sorted by wage component) (2)

Office clerks, general           -.01          .00
Truck drivers, heavy
  and tractor-trailer             .00          .00
Stock clerks
  and order fillers               .00         -.01
Cashiers                         -.01          .00
Customer service
  representatives                 .02         -.01
Team assemblers                  -.01          .00
Securities,
  commodities,
  and financial services
  sales agents                   -.01          .00
Secretaries, except
  legal, medical,
  and executive                  -.01          .00
Computer support
  specialists                     .00          .00
Construction laborers             .01         -.01

Selected occupations with large positive employment
  effects (sorted by employment effect) (2)

Computer software
  engineers,
  applications                    .04          .02
Computer software
  engineers, systems
  software                        .03          .01
Accountants
  and auditors                    .05          .01
Packers and packagers,
  hand                           -.01          .01
Management analysts               .03          .01
Market research
  analysts                        .02          .01
Personal financial
  advisors                        .02          .01
Loan officers                     .03          .01
Network systems
  and data
  communications
  analysts                        .02          .01
Financial analysts                .02          .01

Selected occupations with large negative employment
  effects (sorted by employment effect) (2)

Combined food pre-
  paration and serving
  workers, including
  fast food                       .03         -.04
Retail salespersons               .03         -.02
Home health aides                 .02         -.02
Waiters and waitresses            .02         -.01
Computer programmers.            -.02         -.01
Personal and home care
  aides                           .01         -.01
Cooks, restaurant                 .01         -.01
First-line supervisors/
  managers of non-retail
  sales workers                  -.01         -.01
Stock clerks and order
  fillers                         .00         -.01
Customer service
  representatives                 .02         -.01

(1) Numbers may not add precisely because of rounding.

(2) Management occupations and residual occupations are not included.

Table 3. Employment shares and components of change in the
U.S. real average wage, by pay category, Nov. 2002-May 2007

                                                    Pay categories
                                                 (organized by mean
                                                     hourly wage)

          Category of occupations or              Lowest       Lower
              percentage summary                  paying      paying

                                                   Below     $11.80 to
                                                   $11.80      $15.67
               All occupations

Employment share, Nov.'02, in percent               24.86       24.41
Employment share, May'07, in percent                25.46       23.67
Percentage point change in employment
  share, Nov.'02-May'07                               .60        -.74

Total wage component                                 -.03        -.06
Total employment component                            .05        -.10
Total residual component                              .00         .00
Total of three components                             .02        -.16
Employment effect                                    -.06         .04

Occupations whose mean wage increased
  Nov.'02-May'07

Employment share, Nov.'02, in percent                6.73        5.10
Employment share, May'07, in percent                 6.63        4.80
Percentage point change in employment
  share, Nov.'02-May'07                              -.10        -.30

Occupations whose mean wage declined or
  remained the same Nov.'02-May'07

Employment share, Nov.'02, in percent               18.13       19.31
Employment share, May'07, in percent                18.83       18.88
Percentage point change in employment
share, Nov.'02-May'07                                 .71        -.44

             Percentage summaries

Percent of pay category's Nov.'02 employment
  that was in occupations whose mean wage
  increased Nov.'02-May'07                          27.08       20.88
Percent of pay category's Nov.'02 employment
  that was in occupations whose mean wage
  declined or remained the same Nov.'02-May'07      72.92       79.12
Percent of Nov.'02 employment in occupations
  whose mean wage increased that comes from
  this pay group                                    16.41       12.42
Percent of Nov.'02 employment in occupations
  whose mean wage declined or remained the
  same that comes from this pay category            30.74       32.75

                                                     Pay categories
                                                  (organized by mean
                                                      hourly wage)

          Category of occupations or              Average     Highest
              percentage summary                  paying      paying

                                                 $15.68 to     Above
                                                   $24.11      $24.11
               All occupations

Employment share, Nov.'02, in percent               25.49       25.24
Employment share, May'07, in percent                25.29       25.57
Percentage point change in employment
  share, Nov.'02-May'07                              -.20         .33

Total wage component                                 -.04         .35
Total employment component                           -.03        -.03
Total residual component                              .00        -.03
Total of three components                            -.08         .30
Employment effect                                     .01        -.09

Occupations whose mean wage increased
  Nov.'02-May'07

Employment share, Nov.'02, in percent                9.66       19.55
Employment share, May'07, in percent                 9.57       19.83
Percentage point change in employment
  share, Nov.'02-May'07                              -.09         .28

Occupations whose mean wage declined or
  remained the same Nov.'02-May'07

Employment share, Nov.'02, in percent               15.84        5.69
Employment share, May'07, in percent                15.73        5.75
Percentage point change in employment
share, Nov.'02-May'07                                -.11         .06

             Percentage summaries

Percent of pay category's Nov.'02 employment
  that was in occupations whose mean wage
  increased Nov.'02-May'07                          37.88       77.45
Percent of pay category's Nov.'02 employment
  that was in occupations whose mean wage
  declined or remained the same Nov.'02-May'07      62.12       22.55
Percent of Nov.'02 employment in occupations
  whose mean wage increased that comes from
  this pay group                                    23.54       47.63
Percent of Nov.'02 employment in occupations
  whose mean wage declined or remained the
  same that comes from this pay category            26.86        9.65

          Category of occupations or                All
              percentage summary                 occupations

               All occupations

Employment share, Nov.'02, in percent              100.00
Employment share, May'07, in percent               100.00
Percentage point change in employment
  share, Nov.'02-May'07                               .00

Total wage component                                  .22
Total employment component                           -.11
Total residual component                             -.03
Total of three components                             .08
Employment effect                                    -.11

Occupations whose mean wage increased
  Nov.'02-May'07

Employment share, Nov.'02, in percent               41.03
Employment share, May'07, in percent                40.81
Percentage point change in employment
  share, Nov.'02-May'07                              -.22

Occupations whose mean wage declined or
  remained the same Nov.'02-May'07

Employment share, Nov.'02, in percent               58.97
Employment share, May'07, in percent                59.18
Percentage point change in employment
share, Nov.'02-May'07                                 .22

             Percentage summaries

Percent of pay category's Nov.'02 employment
  that was in occupations whose mean wage
  increased Nov.'02-May'07
Percent of pay category's Nov.'02 employment
  that was in occupations whose mean wage
  declined or remained the same Nov.'02-May'07
Percent of Nov.'02 employment in occupations
  whose mean wage increased that comes from
  this pay group
Percent of Nov.'02 employment in occupations
  whose mean wage declined or remained the
  same that comes from this pay category

Table 4. The number of occupations in the major occupational
groups whose mean hourly wages are in each of 4 pay
categories, Nov. 2002

                                              Mean wage    Mean wage of
    Occupational group               Total      below       $11.80 to
                                                $11.80        $15.67

All occupations                       762         76            150
Management occupations                 30          0              0
Business and financial operations
  occupations                          28          0              0
Computer and mathematical science
  occupations                          16          0              0
Architecture and engineering
  occupations                          34          0              0
Life, physical, and social science
  occupations                          39          0              0
Community and social services
  occupations                          14          0              2
Legal occupations                       9          0              0
Education, training, and library
  occupations                          58          1              3
Arts, design, entertainment, sports,
  and media occupations                37          1              3
Healthcare practitioner and
  technical occupations                46          0              7
Healthcare support occupations         15          4              8
Protective service occupations         20          2              3
Food preparation and serving related
  occupations                          16         14              1
Building and grounds cleaning
and maintenance occupations             9          3              4
Personal care and service
  occupations                          33         17              9
Sales and related occupations          21          3              6
Office and administrative support
  occupations                          55          6             21
Farming, fishing, and forestry
  occupations                          13          4              4
Construction and extraction
  occupations                          58          0             13
Installation, maintenance, and
  repair occupations                   51          1             10
Production occupations                110         13             47
Transportation and material moving
  occupations                          50          7              9

                                     Mean wage of    Mean wage
    Occupational group                $15.68 to        above
                                        $24.11         $24.11

All occupations                           285            251
Management occupations                      4             26
Business and financial operations
  occupations                               4             24
Computer and mathematical science
  occupations                               2             14
Architecture and engineering
  occupations                               9             25
Life, physical, and social science
  occupations                              10             29
Community and social services
  occupations                              11              1
Legal occupations                           4              5
Education, training, and library
  occupations                               9             45
Arts, design, entertainment, sports,
  and media occupations                    20             13
Healthcare practitioner and
  technical occupations                    12             27
Healthcare support occupations              3              0
Protective service occupations              9              6
Food preparation and serving related
  occupations                               1              0
Building and grounds cleaning
and maintenance occupations                 2              0
Personal care and service
  occupations                               6              1
Sales and related occupations               4              8
Office and administrative support
  occupations                              28              0
Farming, fishing, and forestry
  occupations                               5              0
Construction and extraction
  occupations                              42              3
Installation, maintenance, and
  repair occupations                       35              5
Production occupations                     43              7
Transportation and material moving
  occupations                              22             12

Table 5. Employment shares, wage components, and employment
effects for categories of education and training, Nov. 2002-May 2007

                                            Employ-
                                Number       ment      Change in
                                  of        share,      employ-
                               occupa-     November       ment
                                tions        2002        share

    All categories               759        100.00          --
First professional degree         16          1.09        0.09
Doctoral degree                   45          1.09         .07
Master's degree                   29          1.13         .09
Bachelor's or higher
  degree, plus work
  experience (1)                  33          5.03        -.77
Bachelor's degree                103         11.48         .95
Associate degree                  39          4.07         .12
Postsecondary vocational
  award                           48          5.00        -.07
Work experience in a
  related occupation              47          8.92        -.34
Long-term on-the-job
  training                        86          6.47         .18
Moderate-term on-the-job
  training                       180         19.63        -.34
Short-term on-the-job
  training                       133         35.83         .03

Not classified (2)                 3           .27

                                            Employ-
                                 Wage        ment
                              component     effect

    All categories               0.22        -0.11
First professional degree        -.01          .04
Doctoral degree                   .02          .01
Master's degree                   .01          .01
Bachelor's or higher
  degree, plus work
  experience (1)                  .17         -.22
Bachelor's degree                 .06          .10
Associate degree                  .06          .01
Postsecondary vocational
  award                           .01          .00
Work experience in a
  related occupation              .06         -.05
Long-term on-the-job
  training                       -.01          .00
Moderate-term on-the-job
  training                       -.07          .04
Short-term on-the-job
  training                       -.07         -.04

Not classified (2)

                             Number of occupation by
                                  pay category

                                 Mean        Mean
                                 wage        wage
                                below      of $11.80
                               $11.80      to $15.67

    All categories                76          150
First professional degree          0            0
Doctoral degree                    0            0
Master's degree                    0            1
Bachelor's or higher
  degree, plus work
  experience (1)                   0            0
Bachelor's degree                  0            1
Associate degree                   0            2
Postsecondary vocational
  award                            3           12
Work experience in a
  related occupation               1            2
Long-term on-the-job
  training                         2           15
Moderate-term on-the-job
  training                        13           62
Short-term on-the-job
  training                        57           55

Not classified (2)

                             Number of occupation by
                                  pay category

                                 Mean        Mean
                                 wage        wage
                              of $15.68      above
                              to $24.11     $24.11

    All categories                283         250
First professional degree           0          16
Doctoral degree                     1          44
Master's degree                     6          22
Bachelor's or higher
  degree, plus work
  experience (1)                    4          29
Bachelor's degree                  28          74

Associate degree                   25          12
Postsecondary vocational
  award                            27           6
Work experience in a
  related occupation               22          22
Long-term on-the-job
  training                         51          18
Moderate-term on-the-job
  training                         98           7
Short-term on-the-job
  training                         21           0

Not classified (2)

(1) The results of this category should be interpreted with caution
because they may be affected by refinements in occupational coding
procedures.

(2) The occupations represented in these data were assigned to more
than one category of education or training.

Table 6. Components of change in the real average hourly
wages of U.S. States, Nov. 2002-May 2007

                           Employ-               Total of
                  Wage       ment     Residual     three
                  com-       com-       com-      compo-
State            ponent     ponent     ponent    nents (1)

Alabama           $0.05     -$0.13     -$0.02      -$0.10
Alaska              .11       -.03       -.13        -.04
Arizona             .19       -.18       -.12        -.11
Arkansas            .24       -.01       -.04         .19
California          .11        .32       -.05         .38
Colorado            .03        .03        .02         .08
Connecticut        -.31        .24       -.02        -.09
Delaware           1.00       -.29       -.28         .44
Florida             .60       -.21       -.16         .24
Georgia            -.32        .10       -.01        -.23

Hawaii             -.07        .21       -.03         .11
Idaho              -.01        .07       -.17        -.12
Illinois           1.24       -.31       -.16         .76
Indiana            -.12       -.25       -.02        -.38
Iowa                .30       -.17       -.12         .01
Kansas             -.17       -.09       -.02        -.28
Kentucky           -.19        .02       -.06        -.22
Louisiana           .18       -.24       -.05        -.12
Maine               .44       -.14       -.07         .24
Maryland           1.25       -.24       -.16         .85

Massachusetts       .78        .03       -.06         .75
Michigan           -.30        .04        .04        -.22
Minnesota          -.06        .24       -.02         .15
Mississippi         .49       -.04       -.06         .39
Missouri            .52       -.49       -.20        -.17
Montana             .42       -.29       -.10         .03
Nebraska            .37       -.36       -.13        -.12
Nevada             -.11       -.09        .05        -.15
New Hampshire       .55        .04       -.01         .58
New Jersey          .20        .29       -.05         .44

New Mexico          .73       -.51        .01         .23
New York           -.14        .34        .05         .25
North Carolina      .02       -.10       -.10        -.18
North Dakota        .81       -.09       -.18         .54
Ohio                .15       -.33       -.06        -.24
Oklahoma           -.25        .05        .02        -.18
Oregon              .00        .09       -.04         .05
Pennsylvania        .49       -.60       -.15        -.25
Rhode Island        .38        .26       -.09         .55
South Carolina      .12       -.20       -.11        -.18

South Dakota        .11       -.09        .00         .02
Tennessee           .00       -.13       -.02        -.15
Texas               .11       -.28       -.12        -.29
Utah                .16       -.02        .00         .14
Vermont             .18        .10        .05         .32
Virginia           1.18       -.19       -.04         .95
Washington          .32       -.04        .02         .30
Washington, DC     1.22        .29        .47        1.98
West Virginia      -.03       -.36       -.07        -.47
Wisconsin           .07       -.06        .02         .03
Wyoming             .33        .27        .00         .61

(1) Numbers may not add precisely because of rounding.
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No portion of this article can be reproduced without the express written permission from the copyright holder.
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Article Details
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Title Annotation:Wages and Employment
Author:Keller, Rebecca
Publication:Monthly Labor Review
Article Type:Survey
Geographic Code:1USA
Date:Jun 1, 2009
Words:10020
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