High Earning Workers Who Don't Have a Bachelor's Degree

                        U.S. Department of Labor
                       Bureau of Labor Statistics

                Reprinted from the Winter 1994-95 issue
                 of the Occupational Outlook Quarterly

                            by Theresa Cosca

                            [Graphic Omitted]


     What makes a good job?  To many people, it's earnings.  For them,
the good news is that over 9 million, or 1 in every 6, full-time
salaried workers age 25 and older who didn't have a bachelor's degree in
1993 earned $700 or more a week.  That's close to the median for college
graduates.  However, it is necessary to go beyond wages in determining
whether a position is the right one for you.  Job characteristics, such
as the nature of the work and working conditions, are also important.

     Still, everyone agrees that high earnings are better than low
earnings. Furthermore, earnings can be measured, but many other factors
cannot. The following pages discuss occupations in which many highly
paid workers do not have a college degree and point out other factors
that make for a good job.

     Many people are concerned that high-paid jobs are no longer
available for those without a bachelor's degree.  Employment has
declined in manufacturing, telephone communications, and some other
industries that traditionally provided high-paying jobs. For men without
a 4-year degree, earnings adjusted for inflation have fallen over the
past 15 years, due at least in part to these declines.  Rising entry
requirements for some professional, managerial, and other jobs have made
entry without a degree more difficult.  Despite these trends, many
people without college degrees, including many people under 35, still
have high earnings.  In fact, 1 of these workers in 20 earns $1,000 or
more a week.

What the Numbers Say.

     There is no accepted definition of high earnings.  Among the more
objective measures available is the median earnings of all workers, the
median being the point at which half the workers earned more and half
earned less.  The median earnings of workers with a bachelor's degree is
another possible yardstick.

     In 1993, the median for all workers was about $500 a week.  More
precisely, median weekly earnings for all full-time, year-round workers
age 25 and older were $493, or about $25,600 annually. The median for
those with at least a bachelor's degree was $716, or about $37,200
annually.  The low figure is almost three times higher than the minimum
wage ($4.25 an hour) and the high figure is more than four times higher.

[Chart Omitted]

     In 1993, 21.4 million workers without a 4-year degree earned $500
or more a week, and 9.3 million earned $700 or more. (See chart 1.)  In
other words, 2 out of 5 workers without a college degree earned more
than the median for all workers.  (See chart 2.)  As the charts show,
earnings were even higher, at $1,000 or more a week, for many workers.
In a few occupations, more than 10 percent of the workers without
college degrees earned over $1,000 a week.  Consider the top earners-the
most motivated, best prepared, or most fortunate workers-in these
occupations:


                                               Minimum weekly
                                               earnings of the
                                               top 10 percent
     Occupation                                1993

Mining, manufacturing, and wholesale               $ 1,051
  sales representatives
Production occupation supervisors                    1,000
Registered nurses                                      961
Police and detectives                                  889
Administrative support occupations,
  supervisors                                          888
Engineering and related technologists
  and technicians                                      856
Carpenters                                             801
Truckdrivers                                           800


     To some extent, earnings reflect the innate skill and talent of the
worker.  Other factors, such as geographic region, urban or rural
environment, industry, size of the facility, and unionization also
effect earnings.  And men, on average, earn more than women.  Three
other factors significantly affect the proportion of workers who have
high earnings:

* Occupation
* Age
* Education and training.

Occupation.

     Tables 1 and 2 list all occupations that have more than 50,000
full-time wage and salary workers 25 and older who usually earn $700 a
week or more.  For this reason, some small occupations in which workers
have high earnings are not listed; among these are elevator installer
and air traffic controller.  Table 1 lists the occupations and the
number and percentage of workers who do not have a bachelor's degree.
Table 2 lists the occupations by the percentage who usually earn $700 a
week or more.  Tables for all workers would show somewhat lower earnings
because part-timers and workers under 25 typically make less.  Also, in
seasonal occupations, annual earnings may be lower than implied by
weekly earnings.

[Chart Omitted]

Age.

     Generally speaking, earnings increase with age, as workers gain
experience and seniority.  (See chart 3.)  This progression usually
peaks between the ages of 45 to 54.  For the same reasons, the number of
high wage earners is concentrated in the 35-44- and 45-to 54-age groups.
Some may argue from this that highly paid workers without bachelor's
degrees entered the job market years ago, when entry standards were
lower and more high- wage manufacturing jobs were available.  However,
some workers without a bachelor's degree achieve high earnings at a
relatively young age, and obviously did so since "the good old days."
For example, 2.2 million workers without a degree, age 25 to 29, earned
$500 or more a week; and 725,000, $700 or more.

Education.

     Lack of a 4-year degree doesn't mean one has no postsecondary
education or training.  In fact, research done for the Occupational
Outlook Handbook indicates that training other than a bachelor's degree
is the most appropriate preparation for some high-paying jobs.  In
general, workers with more training are more likely to have high
earnings.  Some high-wage occupations are difficult to enter without
training, and within occupations, workers with the most training tend to
have the highest paid and supervisory jobs.  A 1991 study of job
training, discussed in the Winter 1992-93 OOQ, also found that workers
who said they needed some kind of training for their jobs earned
substantially more than those who said they didn't.

     High wage earners develop the skills they need in many ways-
associate's degree programs, college courses, post-secondary vocational
schools and technical institutes, apprenticeships or other formal
employer training, informal on-the-job-training, and armed forces
experience.  Earnings data are not available for all these types of
training, but chart 4 shows that earnings increase steadily with
education.

What's Good Besides Earnings?

     As was said above, many people equate high earnings with good jobs.
But jobs with relatively low wages in certain areas of the country may
be better than the salary indicates because living costs are also likely
to be lower.   And there is more to work than wages.  Other important
concerns when evaluating an occupation include the following:

* Benefits
* Projected growth and openings
* Unemployment rate
* Advancement potential
* Nature of the work and working conditions.

     Depending on the importance you give each of these factors, a good
job might be one with lower than average earnings.

Benefits.

     Employee benefits, once a minor addition to wages and salaries, are
an increasingly important factor in defining a good job.  In 1993,
benefits averaged about 29 percent of total compensation costs.  Some
benefits, such as health and life insurance or subsidized child care,
are virtually the same as cash, because they would otherwise have to be
paid for out of earnings.  Paid holidays and vacation leave improve the
recipients' quality of life.  Most employers also provide other benefits
that add to the quality of a job, such as sick leave.  Some employers,
like airlines, provide free or subsidized travel, while retailers may
provide discounts on merchandise.

[Chart Omitted]

Projected growth and openings.

     The projected growth rate and number of job openings serve to gauge
how easy or difficult it will be to find a job in an occupation, and
perhaps, also to be promoted.  These projections are discussed in the
Occupational Outlook Handbook and in "The 1992-2005 Job Outlook in
Brief," in the Spring 1994 OOQ.  In some cases, information on
competition for jobs is also given.  Some high-wage occupations
available without a college degree, such as the precision production
occupations, are not expected to grow. Others are expected to grow about
as fast as the average for all workers, including engineering and
science technicians; construction workers; and mechanics, installers,
and repairers. Registered nurse and most health technician and
technologist occupations are projected to grow much faster than average.

     More job openings result from the need to replace workers who
transfer to different occupations, retire, or stop working for some
other reason than from growth.  For example, employment of secretaries
is projected to increase by 386,000 jobs by 2005, but net replacement
needs are expected to provide more than twice as many openings.  Even
occupations with little or no projected job growth have some openings.
For example, precision production occupations are expected to have
68,000 job openings annually due to net replacement needs.

[Chart Omitted]

Unemployment rate.

     Some occupations have high unemployment rates.  This does not
necessarily disqualify them as high-paying jobs.  Those that provide
high hourly earnings and unemployment compensation can still yield a
high annual income.  Furthermore, many workers in these occupations do
have steady year-round jobs.  High unemployment rates are common in many
construction occupations, such as carpenter and electrician, as well as
manufacturing jobs, such as assembler and machine operator.

     Unemployment rates actually reflect two kinds of unemployment:
Cyclical and long-term.  Recession and seasonal changes in production
create cyclical unemployment in many occupations. During slack periods,
workers may face temporary layoffs but can expect to be reemployed when
conditions improve.  On the other hand, long-term unemployment or even
permanent job loss may be caused by restructuring or plant closings.
Jobs in organizations or industries with good long term prospects are
obviously more desirable.  Even if you lose your job, you are more
likely to find another one in such an industry.

[Graphic Omitted]

Advancement potential.

     Some occupations offer a natural progression of career advancement,
such as from electrician apprentice to journey level electrician to
electrician supervisor or contractor.  Workers in other occupations may
need to carve their own paths to success, following less orthodox
routes.  Still other occupations or jobs offer few if any chances for
advancement.

     Often, promotion potential varies from employer to employer.  In
general, fast growing occupations and organizations offer better
promotion prospects.  Large employers offer better prospects, at least
without the need to change employers, but small organizations may offer
broader responsibilities and opportunities to learn a wider range of
skills.  In any job, it is important to be ready to act on opportunities
as they arise.

Nature of the work.

     For most people, a good job is one that they find interesting, that
fully uses their skills, or that satisfies their needs in other ways.
Almost everybody appreciates a job where they can see the results of
their work and feel a sense of accomplishment. Others seek a job related
to an interest, such as cars, music, or children.  Helping others is
often the central satisfaction for those in health, teaching, or social
work occupations. Satisfying aspects of a job may include analyzing data
or information, coordinating events and activities, teaching or
mentoring, selling to or persuading others, operating or fixing
machinery, or designing or creating new ideas, concepts, or works of
art.

     Other characteristics that define a good job include the level of
physical exertion necessary, cleanliness and safety of the workplace,
level of contact with people, ability to decide how work is to be done,
and the level of stress.  For some, no amount of money is worth the
grueling hours and stress that many physicians live with, or the
physical exertion, danger, or dirt faced by coal miners and some
construction workers, or the boredom of assembly line work.  Others find
job pressures exciting, don't mind the danger or dirt, or welcome the
stress. ("Matching Yourself With the World of Work in 1992," in the Fall
1992 OOQ, classifies occupations by characteristics such as these.
Reprints of the article are for sale by the Government Printing Office,
price: $1.)

     For many, working with people that they like and respect and having
a good supervisor are essential elements of a good job. They may also
want an employer whose goals and policies they agree with.  Likewise,
some workers seek the security of a salaried job with a
well-established, stable organization, but others find stimulation in
risk-taking -running their own business, working for a fledgling
organization, or selling on commission.

     Where a job is located may also be important.  Some people do not
want a long commute or a geographic relocation.  For them, a good job is
one that is available where they live.

     Finally, the steady hours that high pay demands may be just the
opposite of what a worker wants.  Some only want part-time work, due to
family responsibilities, school, or other pursuits.

Will You Be Ready?

     Despite the public's perception that the economy is creating mostly
lower skill, low wage jobs, examination of the data reveals that there
are many good jobs for those who do not have a bachelor's degree-not
only jobs with high wages, but also jobs that are good for other, less
tangible reasons.

     Any job is a complicated medley of positives and negatives.  One
factor seldom makes a job good or bad.  Get to know all you can about
occupations you are considering.  It is extremely important to research
the entry requirements and other characteristics so that you will know
what to expect out of the job.  Above all, remember that it is important
to make a career choice that is good for you.  The demand for skilled
workers will remain strong. Will you be ready?


Table 1
Occupations of workers with less than a bachelor's degree, 1993

                                                  Total of Number
Occupation*                                          all workers    Percent
                                                    (thousands)**

                                                       54,095       71

Accountants and auditors                                 313         28
Administrators and officials, public administration      215         42
Assemblers                                               845         96
Automobile mechanics                                     480         96
Bus, truck, and stationary engine mechanics              274         98
Carpenters                                               606         93
Computer operators                                       367         82
Computer programmers                                     197         40
Computer system analysts and scientists                  190         31
Correctional institution officers                        261         91
Designers                                                154         53
Electrical and electronic engineers                      121         26
Electrical and electronic equipment repairers            271         87
  except telephone
Electrical and electronic technicians                    212         83
Electrical power installers and repairers                101         96
Electricians                                             475         95
Financial managers                                       203         42
Firefighting occupations                                 155         90
Health technologists and technicians                     808         79
Industrial, mechanical, and all other engineers          274         27
Industrial machinery repairers                           487         96
Insurance sales occupations                              200         55
Investigators and adjusters, insurance and other         673         75
Machine operators and tenders, except precision        3,667         96
Machinists and precision metalworking occupations        669         96
Mail carriers and postal clerks                          513         89
Managers, marketing, advertising, and public relations   181         41
Managers, properties, and real estate                    201         65
Managers, food service and lodging establishments        469         78
Managers and administrators not elsewhere classified   2,065         57
Other financial officers                                 249         43
Personnel, training, and labor relations specialists     164         47
Plumbers, pipefitters, and steamfitters                  287         96
Police and detectives                                    353         75
Purchasing agents and buyers                             260         66
Rail transportation occupations                           95         94
Real estate sales occupations                            168         54
Registered nurses                                        656         51
Sales occupations, other business services               190         53
Sales representatives, mining and manufacturing          635         56
  and wholesale
Science and engineering technicians                      287         75
Secretaries                                            2,326         90
Stationary engineers and other plant and system          230         91
  operators
Supervisors, police and firefighting                      92         71
Supervisors, mechanics and repairers                     181         89
Supervisors, construction occupations                    419         88
Supervisors, production occupations                    1,010         87
Supervisors, administrative support occupations          519         73
Supervisors and proprietors, sales occupations         1,658         72


Telephone and telephone line installers and               211        95
  repairers
Truck drivers                                           2,000        96
Welders and cutters                                       438        98
All other occupations                                  26,021        70


* Includes only occupations with at least 50,000 workers with less than
a bachelor's degree whose usual weekly earnings are $700 or more.
Source: Current Population Survey.

** Employed wage and salary workers.



Table 2
Workers with less than a bachelor's degree and usual weekly
earnings of $700 or more, by occupation, 1993


                                                   Number
                                                   Occupation*
                                                   (thousands)***  Percent

Total                                                   9,269        17

Electrical and electronic engineers**                      81        67
Industrial, mechanical, and all other engineers**         165        60
Rail transportation occupations                            56        59
Computer system analysts and scientists**                 108        56
Supervisors, police and firefighting                       50        54
Electrical power installers and repairers                  55        54
Computer programmers                                      107        54
Managers, marketing, advertising, and public               91        50
  relations**
Supervisors, mechanics and repairers                       81        45
Firefighting occupations                                   69        44
Telephone and telephone line installers and repairers      92        44
Financial managers**                                       87        43
Managers and administrators not elsewhere classified      874        42
Supervisors, construction occupations                     177        42
Registered nurses                                                   269              41
Real estate sales occupations                              65        39
Police and detectives                                     135        38
Electrical and electronic technicians                      75        35
Designers                                                  52        34
Sales representatives, mining and manufacturing           212        33
  and wholesale
Stationary engineers and other plant and system            75        33
  operators
Supervisors, production occupations                       326        32
Sales occupations, other business services                 61        32
Personnel, training, and labor relations                   52        32
  specialists**
Other financial officers                                   79        32
Electricians                                              149        31
Administrators and officials, public administration        66        30
Electrical and electronic equipment repairers,             82        30
  except telephone
Plumbers, pipefitters, and steamfitters                    78        27
Insurance sales occupations                                52        26
Supervisors, administrative support occupations           134        26
Managers, properties and real estate**                     51        25
Machinists and precision metalworking occupations         165        25
Science and engineering technicians                        69        24
Industrial machinery repairers                            116        24
Supervisors and proprietors, sales occupations            378        23
Accountants and auditors**                                 68        22
Mail carriers and postal clerks                           109        21
Purchasing agents and buyers                               51        20
Bus, truck, and stationary engine mechanics                53        19
Truck drivers                                             382        19
Correctional institution officers                          50        19
Managers, food service and lodging establishments          83        18
Carpenters                                                          107              18
Automobile mechanics                                       81        17
Welders and cutters                                        64        15
Computer operators                                         50        14
Health technologists and technicians                      106        13
Assemblers                                                 96        11
Investigators and adjusters, insurance and other           73        11
Machine operators and tenders, except precision           255         7
Secretaries                                               117         5
All other occupations                                   2,687        10


* Includes only occupations with at least 50,000 workers with less than
a bachelor's degree.

** A bachelor's degree is usually required for entry.  Those without a
degree may have entered the occupation when requirements were lower or
may be in the limited number of positions that do not require a degree.

*** Employed wage and salary workers.

Source: Current Population Survey.


Theresa Cosca is an economist in the Office of Employment
Projections, BLS (202) 606-5712

Occupational Outlook Quarterly/Winter 1994-95