Profiles of Occupational Pay: A Chartbook

__________________________£ 0 3 y___________________________________________________

U.S. Department of Labor 

Bureau of Labor Statistics 

1979

Bulletin 2037

331.22

ULSP

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Material in this publication is in the public domain and may be

reproduced without permission of the Federal Government. Please

credit the Bureau of Labor Statistics and cite Profiles of

Occupational Pay: A Chartbook, Bulletin 2037.

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Federal Reserve Bank of St. Louis
Profiles of Occupational Pay: A Chartbook

S. Department of Labor 

ay Marshall, Secretary

jreau of Labor Statistics 

met L. Norwood, Commissioner 

jcember 1 979

illetin 2037

If

LSA-SP

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For sale by the Superintendent of Documents, U.S. Government Printing Office

Washington, D.C. 20402

Stock Number 029-001-02415-1

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Preface

The Bureau of Labor Statistics has systematically collected 

wage data by occupation since the turn of the centuryfirst by industry, then across industry lines by metropolitan 

area, and most recently across industry lines on a 

nationwide basis. As the most comprehensive source of 

current information on earnings in particular occupations, 

this body of data has played an important role in clarifying 

public policy issues concerned with wages and in 

expediting labor-management negotiations.

This chartbook draws upon the wage survey programs of 

the Bureau and other data to illuminate some of the factors 

that affect workers’ earnings. Part I looks at pay relationships within major occupational groups. Part II profiles 

some characteristics of high- and low-paying metropolitan 

areas covered by the Area Wage Survey program. Part III 

portrays some characteristics of high- and low-paying 

manufacturing industries that are part of the Industry Wage 

Survey program.

This chartbook was developed by Martin E. Personick of the 

Office of Wages and Industrial Relations, Division of 

Occupational Wage Structures, under the direction of 

George L. Stelluto, Assistant Commissioner, and Charles 

M. O’Connor, Division Chief. John H. Cox and Sandra L. 

King of the Division provided valuable assistance.

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Contents

Page

Part I . An overview of occupational pay ................................................................................................................... 1

Chart 1. Occupational distribution of employed persons, 1978 ......................................................... 3

Chart 2. Components of compensation of employees in private

nonfarm establishments, 1977............................................................................................. 5

Chart 3. Median usual weekly earnings of full-time wage

and salary workers by occupational group, May 1978......................................................... 7

Chart 4. Salary ranges of chemists and engineers in private

industry, March 1978............................................................................................................ 9

Chart 5. Earnings in maintenance craft occupations, July 1977......................................................... 11

Chart 6. Average union wage rates for journeymen as a percent

of rates for helpers and laborers, building construction,

1907-78 ................................................................................................................................. 13

Chart 7. Industry pay ranges in production worker occupations,

April-September 1976 ............................ 15

Chart 8. Earnings distributions for chemical operators and 

helpers in industrial chemicals establishments,

Chicago metropolitan area, June 1976 ................................................................................ 17

Chart 9. Percent of women and men production workers

earning less than their industry average, 1974-76 ............................................................... 19

Chart 10. Areas with highest and lowest pay relatives for

four occupational groups in private industry, 1976 ............................................................. 21

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Part II. Profiles of high-and low-paying metropolitan areas.................................................................................. 22

Distribution of areas by:

Chart 11. Census region......................................................................................................................... 25

Chart 12. Size of area employment........................................................................................................ 27

Chart 13. Average establishment s iz e .................................................................................................. 29

Chart 14. Extent of labor-management contract coverage .................................................................. 31

Chart 15. Relative importance of manufacturing employment............................................................. 33

Chart 16. Relative importance of high- or low-paying manufacturing................................................... 35

Part III. Profiles of high- and low-paying manufacturing industries...................................................................... 36

Chart 17. Pay relationships for production and related workers among 40

manufacturing industries, 1977 ......................................................................................... 37

Distribution of manufacturing industries by:

Chart 18. Capital-to-labor ratio.............................................................................................................. 39

Chart 19. Extent of shipments concentrated in large firm s.................................................................. 41

Chart 20. Average plant s iz e ................................................................................................................. 43

Chart 21. Extent of labor-management contract coverage .................................................................. 45

Chart 22. Extent of location in metropolitan areas............ ................................................................. 47

Chart 23. Extent of location in the South.............................................................................................. 49

Chart 24. Incidence of incentive pay systems....................................................................................... 51

Chart 25. Relative dispersion of earnings............................................................................................. 53

Chart 26. Proportion of women production workers ............................................................................ 55

Chart 27. Worker attachment to the Federal minimum w age.............................................................. 57

Appendixes:

A. BLS occupational wage surveys ...................................................................................................... 58

B. Selected bibliography — Monthly Labor Review articles on

occupational wage structures...................................................................................................... 60

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Part I . An Overview of Occupational Pay

Change is characteristic of American workers, who may 

change jobs, skills, locations, and even occupations 

several times over the course of their work lives. Yet some 

patterns are discernible within this ever-changing labor 

force that are highlighted in the following charts. Based on 

data gathered by BLS on the earnings of different groups of 

workers, the charts provide a panoramic view of the 

Nation’s work force. They illustrate wage variation among 

and within occupations and suggest some of the factors 

that directly influence pay levels and pay structure.

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Workers are customarily grouped into four broad occupational

categories — white-collar, blue-collar, service, and farm

White-collar workers make up half of all employed persons; 

blue-collar workers, one-third; and service workers, most 

of the remainder. Within these broad categories are workers 

with a diversity of occupations and skills.

Employed persons,

1978

[in thousands]

T o ta l..................................................................... 94,373

White-collar workers........................................... 47,205

Professional and technical workers............... 14,245

Managers and administrators......................... 10,105

Sales workers ....................................... 5,951

Clerical workers............................................... 16,904

Blue-collar workers............................................. 31,531

. Craft and kindred workers ............................... 12,386

Operatives, except transport........................... 10,875

Transport equipment operatives..................... 3,541

Nonfarm laborers ............................................ 4,729

Service workers................................................... 12,839

Private household workers ............................. 1,162

Service workers, except private household ... 11,677

Farm workers....................................................... 2,798

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Chart 1. Occupational distribution of employed persons, 1978

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Most workers receive a variety of benefits in addition

to pay for time worked

Benefits such as paid vacations and holidays, health 

insurance, and retirement programs have become an 

important part of workers’ compensation. But pay for time 

worked still accounts for 3 of every 4 payroll dollars 

employers spend.

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Chart 2. Components of compensation of employees in private nonfarm 

establishments, 1977

White-collar

employees1

Blue-collar and

service employees1

3.4%

14.1%

6.7%

75.8%

------------ Other2 --------------

— Health, insurance, and —

retirement benefits

—Vacation and holiday p a y -

— Pay for time worked —

2.0%

14.9%

5.6%

77.5%

1 Retail sales workers are included with blue-collar and service employees in this chart. 

^Includes unemployment benefits, savings and thrift plans, and nonproduction bonuses.

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Major occupational groups exhibit wide differences in pay levels

Usual weekly earnings of professional and technical 

workers were about double those of service workers and 

two-thirds higher than clerical workers’ earnings in May 

1978. Moreover, large disparities in pay existed between 

occupations that are part of the same group:

Median usual weekly

earnings, May 1978

Professional and technical workers............... $294

Engineers....................................................... 431

Engineering and science technicians........... 271

Service workers, except private household .. 152

Protective service workers............................. 254

Cleaning service workers.............................. 156

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Chart 3. Median usual weekly earnings of full-time wage and salary 

workers by occupational group, May 1978

White-collar

Blue-collar

Service

Farm

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Within an occupation are workers whose jobs differ in complexity and

responsibility and whose pay varies accordingly

In white-collar occupations, median salaries of workers in 

the highest work levels are several times as high as those in 

entry or developmental positions of the same occupation. 

The latter usually require less training, embody simpler job 

functions, and carry little or no supervisory responsibility.

Although they may be at equivalent work levels, workers in 

different occupations, such as engineers and chemists, 

may find the pay advantage shifting as they move up the 

ladder:

Median monthly salary,

March 1978

Engineer I ................................................. $1,316

Chemist I ................................................. 1,135

Engineer IV .............................................. 1,983

Chemist IV ............................................... 1,942

EngineerVIII ............................................ 3,450

Chemist V III.............................................. 3,859

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Chart 4. Salary ranges of chemists and engineers in private industry, 

March 1978

Monthly salary

0 $500

Chemist I

II - -

IV

V

VI

VII

VIII

Engineer I - -

IV--

V - -

VI - -

VII - -

VIII - -

$1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500

Note: Salary ranges shown exclude top and bottom 10 percent of workers in each work level. Work levels are as defined 

in the National Survey of Professional, Administrative, Technical, and Clerical Pay.

$5,000

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Maintenance craft workers have a fairly homogeneous pay structure

As is true in every occupation, there is a range of earnings 

within each of the highly skilled maintenance craft jobs.

The range is generally narrower, however, than for other 

groups, largely because pay rates in these occupations are 

commonly set by labor-management agreements at a single 

rate for a journeyman worker. Earnings are also less 

dispersed because maintenance craft workers are 

concentrated in large firms—those with the greatest 

demand for workers with specialized skills.

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Chart 5. Earnings in maintenance craft occupations, July 1977

Hourly earnings

$5.00 $5. 50 $6.00 $6.50 $7.00 $7. 

i

50 $8. 00 $8.50 $9. 30 $9.50

V-/ul [Joi i i . 1 O

Electricians—

Machinists— 

Mechanics

1

i

i

Median

1

i

(machinery)

Mechanics

1

i

(automotive)

M illwrights—

Tool-and-die

makers

Note: Salary ranges shown exclude top and bol tom 10 percen

1

i

i

1

t of workers ir each occupat on.

1

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The wage advantage of skilled over unskilled workers has narrowed

substantially since the turn of the century

Skilled craft workers generally have not maintained their 

earlier substantial pay advantage over unskilled workers. 

Uniform cents-per-hour increases to unionized journeymen 

and helpers and laborers in construction, for example, contributed to a steady narrowing of the difference in wage 

rates over several decades. By the mid-1960’s, this differential stabilized at about one-third. A similar trend 

occurred in manufacturing during the first half of the 

century.

Annual average 

percent increase

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Chart 6. Average union wage rates for journeymen as a percent of rates for helpers 

and laborers, building construction, 1907-78

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The industry in which a job is located may be a more important

influence on pay than the occupation itself

Unskilled jobs invariably are at the bottom of the pay 

structure in an industry. Yet they may pay more than jobs 

that are higher in the pay structure in other industries. 

Janitors in petroleum refining, for example, are paid more, 

on average, than workers in the most skilled production 

occupations of the men’s suit industry.

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Chart 7. Industry pay ranges in production worker occupations, 

April - September 1976

Average 

hourly earnings

Petroleum Industrial Cigarettes Ship- Men’s suits Textile Hosiery, Women’s

refining chemicals building dyeing except women’s hosiery

15

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Earnings of individuals in the same job may vary greatly

Length of employee service and differing pay scales among 

establishments are two of the factors leading to differences 

in pay for workers doing the same job. For these same 

reasons, workers in different jobs, one skilled and the other 

unskilled—as in the example shown—may have similar 

earnings.

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Chart 8. Earnings distributions for chemical operators and helpers in industrial 

chemicals establishments, Chicago metropolitan area, June 1976

Percent of workers

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Most women earn less than the average for the industry in which they work,

even in high-paying manufacturing industries

As is true for some other groups of workers, women do not 

necessarily reap the benefits of being employed in a 

high-paying manufacturing industry. A large majority of 

women earned less than the industry average in four such 

industries studied by BLS. In the glass container industry, 

where women made up one-third of the production work 

force, only 3 percent of the women earned above the 

average, compared to 46 percent of the men. This primarily 

reflects the way men and women were distributed among 

occupations.

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Chart 9. Percent of women and men production workers earning less 

than their industry average, 1974-76

Percent

1975 1974 1974

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Broad wage differences exist among metropolitan areas

Location is an important factor in pay levels for most 

groups of workers. This is especially true of unskilled 

workers, whose pay is strongly affected by local labor 

market forces. Among 70 metropolitan areas studied by 

BLS in 1976, Saginaw, Michigan, reported pay for unskilled 

plant workers at 41 percent above the average for all 

metropolitan areas; San Antonio, Texas, in contrast, was 

33 percent below that average.

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Chart 10. Areas with highest and lowest pay relatives for four occupational 

groups in private industry, 1976

Office clerical workers

Al l-metropol itan-area 

average = 100

140

Electronic data processing workers

Al l-metropol itan-area 

Average = 100

140

Skilled maintenance workers

San Francisco Greenville, S.C.

140

120 —

100 —

80 —

60 —

40

Unskilled plant workers

Saginaw San Antonio

21

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Part II. Profiles of High- and Low-paying Metropolitan Areas

Metropolitan areas are the hub of most economic a c tiv ity - 

labor markets within which 2 of every 3 of the Nation’s 

workers reside. This section depicts some characteristics 

of high- and low-paying urban areas that help explain their 

relative pay levels.

The areas profiled in the following charts are part of the 

Bureau’s annual wage survey program, which covers 70 

areas representative of the Nation’s 262 mainland 

metropolitan areas. These surveys coverall manufacturing 

industries but exclude from the nonmanufacturing sector 

agriculture, mining, construction, and government. The 

year of reference is 1976.

High- and low-paying areas are shown on the adjoining 

page for two broad occupational groups: (1) Office 

workers, referring to clerical and electronic data processing 

personnel; and (2) maintenance and unskilled plant workers.

The methodology for selecting areas by pay level appears 

in appendix A.

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Office workers

High-paying areas

Anaheim-Santa AnaGarden Grove 

Atlanta 

Chicago 

Detroit

Los Angeles-Long Beach

Newark

New York

San Francisco-Oakland 

San Jose 

Seattle-Everett

Low-paying areas

Chattanooga 

G reen vi 11 e-Spartan bu rg 

Jackson (Miss.) 

Memphis 

New Orleans 

Oklahoma City 

Richmond 

San Antonio

Maintenance and unskilled plant workers

High-paying areas

Buffalo

Chicago

Cleveland

Davenport-Rock IslandMoline 

Dayton 

Detroit 

Kansas City 

Milwaukee 

Minneapolis-St. Paul 

Portland (Oreg.-Wash.) 

Sacramento 

San Francisco-Oakland 

San Jose 

Seattle-Everett 

Toledo

Low-paying areas

Greenvi 11 e-Spartan burg

Huntsville

Jackson (Miss.)

Miami

Norfolk-Virginia BeachPortsmouth 

Oklahoma City 

Providence-WarwickPawtucket

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Regional location is a factor in pay differences among labor markets

High-paying metropolitan areas are predominantly in the 

North Central region and the West; low-paying areas are 

typically in the South. However, two large Southern areas— 

Atlanta and Washington—are among the high-paying areas 

for office workers.

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Chart 11. Distribution of areas by Census region

Office workers

Highpaying

areas

Lowpaying

areas

Number of areas

Maintenance and unskilled plant workers

Highpaying

areas

Lowpaying

areas

Areas located in:

Northeast North Central South West

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High-paying areas commonly are larger labor markets

Large areas are often associated with high pay levels that 

may compensate in part for higher living and commuting 

costs. Half of the high-paying areas studied, for example, 

were large labor markets. Low-paying areas, however, were 

of medium size; the number of workers usually fell within 

the 100,000 -500,000 range.

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Chart 12. Distribution of areas by size of area employment

Office workers

Highpaying

areas

Lowpaying

areas

Maintenance and unskilled plant workers

Highpaying

areas

Lowpaying

areas

Area employment:

Under 

100,000

53 100,000 to 

500,000

500,000 

or more

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Large establishment size is more closely associated with

high pay for office workers than for plant workers

Large establishments have long been thought to have high 

pay levels. The evidence, however, is not conclusive—often 

holding only for certain industries or groups of workers. In 

just over half of the high-paying areas for office workers 

and one-third of those for plant workers, establishments 

were above average in size. Small establishment size 

characterized about half of the low-paying areas for both 

plant and office workers.

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Chart 13. Distribution of areas by average establishment size

Office workers

Highpaying

areas

Lowpaying

areas

Number of areas

Maintenance and unskilled plant workers

Highpaying

areas

Lowpaying

areas

Average establishment size:

Under 190 190 to 280 280 or more

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Unionization is more common in high-paying areas

Unionization tends to raise pay levels. Workers in 

high-paying areas are more unionized than in low-paying 

ones. This is true for both office and plant workers, 

although the degree of unionization among plant workers is 

much greater.

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Chart 14. Distribution of areas by extent of labor-management 

contract coverage

Office workers

Number of areas

Highpaying

areas

Lowpaying

areas

Percent of office workers unionized:

11

8

Under 8 8 to 15 : 15 or more

Maintenance and unskilled plant workers

Highpaying

areas

Lowpaying

areas

Percent of plant workers unionized:

Under 45 45 to 80 80 or more

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Wage variation among areas is not associated with the relative presence

or absence of manufacturing activity. . .

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Chart 15. Distribution of areas by relative importance of manufacturing employment

Office workers

Highpaying

areas

Number of areas

Lowpaying

areas

Maintenance and unskilled plant workers

Under 40 40 to 60 60 or more

33

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. but is associated with the kind of manufacturing industry in an area

High-paying areas typically have a significant proportion of 

their manufacturing work force in high-paying industries; 

low-paying areas usually reflect more the presence of lowpaying manufacturing.

Both kinds of manufacturing industry are present in 

virtually every area. Examples of high- and low-paying areas 

are shown below, along with measures of the relative 

importance of manufacturing in these areas and of the 

dominant kind of manufacturing industry:

Percent of total Mix of

employment in manufacturing

manufacturing industry1

High-paying areas:

Toledo ... 

Davenport

61

66

30

13

Low-paying areas:

Greenville

Providence

77

66

-49

-32

1 Employment in 5 high-paying manufacturing industries minus employment in 6 lowpaying manufacturing industries as a percent of total manufacturing employment.

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Chart 16. Distribution of areas by relative importance of highor low-paying manufacturing

Office workers

Highpaying

areas

Lowpaying

areas

Number of areas

5 2

8

Maintenance and unskilled plant workers

Highpaying

areas

Lowpaying

areas

Percent of manufacturing employment:

High- minus \\\\\\\v High- minus

low-paying low-paying

manufacturing = 

+ 16% or more

manufacturing = 

+ 4 to 16%

| High- minus 

j low-paying 

manufacturing = 

+ 3 to-50%

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Part III. Profiles of High- and Low-Paying Manufacturing Industries

Manufacturing industries employ 3 in every 10 of the 

Nation’s private nonfarm workers. The following charts 

portray some characteristics of high- and low-paying 

manufacturing industries. The industries, part of the 

Bureau’s industry wage survey program, represent nearly all 

kinds of manufacturing activity.

In selecting industries for the following analysis, hourly 

earnings for production and related workers in 40 

manufacturing industries were compared to the average for 

ail manufacturing in 1977. High-paying industries are those 

in which hourly earnings were at least 10 percent above the 

average; low-paying industries are those in which earnings 

were at least 10 percent below the average.

Fourteen industries are in the high-paying group and 18 are 

in the low-paying group in the following charts, except for 

charts 18, 22, and 25, for which some data were not 

available.

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Chart 17. Pay relationships for production and related workers among 40 manufacturing 

industries, 1977

(All-manufacturing average = 100)

Basic iron and steel 

Petroleum refining 

Motor vehicles 

Industrial chemicals 

Motor vehicle parts 

Cigarettes 

Shipbuilding 

Prepared meat 

Iron and steel foundries 

Pulp, paper, paperboard 

Glass containers 

Meat packing 

Flour milling 

Machinery 

Fabricated steel 

Synthetic fibers 

Paints and varnishes 

Glass (except containers) 

Fertilizer 

Nonferrous foundries 

Fluid milk 

Corrugated boxes 

Leather tanning 

Candy 

Men’s suits 

Structural clay 

Plastics 

Women’s suits 

Textile dyeing 

Cotton and synthetic textiles 

Wool textiles 

Women’s dresses 

Furniture 

Hosiery, except women’s 

Women’s hosiery 

Footwear 

Cigars 

Men’s trousers 

Work clothing 

Men’s shirts

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Capital intensity is lower in low-paying industries

Capital intensity, measured by the book value of an 

industry’s plant and equipment assets per production 

worker, is typically low in low-paying industries, especially 

in apparel manufacturing. The ratio of capital to labor is 

high, in contrast, in some industries associated with “high 

pay” factors such as high skill requirements and greater 

opportunities for productivity advance. It was highest by far 

in the petrochemical industries and also well above the 

all-manufacturing average in basic iron and steel, flour 

milling, and papermaking.

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Chart 18. Distribution of manufacturing industries by capital-to-labor ratio

High-paying industries Low-paying industries

1

Book value per production worker:

1 More than p "1 Between $15,000 [ 1 Less than Between $15,000 [

... ■ $45,000 ■ J and $45,000 1 $15,000 and $45,000 L

Less than 

$15,000

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Although not typical of most industries, concentration of shipments in a few

large firms is more common in high-paying than in low-paying industries

A concentrated industry has been defined as one in which 

four firms account for half or more of the value of 

shipments. Few industries studied met this criterion, but, 

of those that did, four were high paying—cigarettes, glass 

containers, motor vehicles, and motor vehicle parts. Only 

one low-paying industry—cigars—fell within the definition 

Four low-paying industries—plastics, wood furniture, 

women’s dresses, and women’s suits—were characterized 

by the presence of numerous small firms, as was one 

high-paying industry—prepared meats.

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Chart 19. Distribution of manufacturing industries by extent of shipments

concentrated in large firms

High-paying industries Low-paying industries

1

Concentration ratios: Percent of shipments of 4 largest firms—

50 or more 1 16 to 50 15 or less 50 or more 16 to 50

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Large plants are more typical of high-paying industries

In half of the high-paying industries, the average plant has 

at least 250 workers; in only one low-paying industry— 

cotton and synthetic textiles—is the average plant as large. 

However, small plants are typical in the high-paying flour 

milling and prepared meat products industries.

Earnings in large establishments in an industry are higher, 

on average, than in small ones.

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Chart 20. Distribution of manufacturing industries by average plant size

High-paying industries Low-paying industries

250 or more | 50 to 250 Under 50

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Unionized workers are predominant in high-paying industries

but are in the minority in most low-paying ones

All but one high-paying industry—machinery—are at least 

three-fourths unionized; in contrast, only two low-paying 

industries—men’s and women’s suits and coats—are as 

heavily organized. Most low-paying industries, in fact, are 

primarily nonunion.

Within each industry, workers in plants in which a majority 

are covered by collective bargaining agreements have a 

wage advantage over those who work in primarily nonunion 

plants. The size of this differential varies greatly and is 

larger in some low-paying industries than in high-paying 

ones.

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Chart 21. Distribution of manufacturing industries by extent of labor-management

contract coverage

High-paying industries Low-paying industries

75 or more 50 to 75 Under 50

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Most workers in high-paying industries are located in metropolitan areas

while a majority in many low-paying industries work in smaller communities

In all but one high-paying industry—paper—the work force 

is predominantly located in metropolitan areas; most 

workers in low-paying industries are in smaller 

communities, often in the South.

In most industries, plants located in metropolitan areas 

have higher pay levels than those in smaller communities.

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Chart 22. Distribution of manufacturing industries by extent of location

in metropolitan areas

High-paying industries

1

Percent of workers in metropolitan areas:

75 or more M M 50 to 75 Under 50

Low-paying industries

75 or more 50 to 75 ] Under 50

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Low-paying industries have a much larger proportion of their work force

in the South than do high-paying industries

Low-paying industries commonly employ a majority of their 

workers in the South; most high-paying industries employ 

less than one-fourth of their workers in southern plants. 

Textiles and apparel dominate in the low-paying industries 

primarily located in southern areas. Among the high-paying 

group, only the cigarette and industrial chemical industries 

typically are located in the South.

Within the same industry, workers in the South usually 

have lower earnings than workers elsewhere.

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Chart 23. Distribution of manufacturing industries by extent of location in the South

High-paying industries

Percent of workers in southern plants:

50 or more H H H 25 to 50 Under 25

Low-paying industries

50 or more 25 to 50 Under 25

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Incentive pay systems are more prevalent in low-paying industries

Piecework, bonus, and other incentive pay systems apply 

to a majority of workers in nearly half of the low-paying 

industries. Only in basic steel are such pay plans 

predominant in the high-paying group. Low-paying, 

incentive-oriented industries are highly labor intensive. 

(See chart 18.)

Although “ incentive industries” are typically low-paying, 

incentive-paid workers usually earn more than their 

time-rated counterparts, regardless of industry.

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Chart 24. Distribution of manufacturing industries by incidence of 

incentive pay systems

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The range of employee earnings is wider in low-paying than in

high-paying industries

The earnings spread typically is highest in low-paying 

industries, where incentive pay systems prevail. In 

high-paying industries the spread is narrower primarily 

because single rates for an occupation—negotiated 

companywide or even industrywide, as in motor vehicles— 

are common.

Other factors that influence earnings dispersion in an 

industry are the ways workers are distributed among 

regions and occupational groups.

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Chart 25. Distribution of manufacturing industries by relative dispersion of earnings

High-paying industries Low-paying industries

Percent of median earnings:

High

dispersion 

(middle range 

= 30% or more)

Medium 

dispersion 

(middle range 

= 20-30%)

| Low

J dispersion 

(middle range 

= under 20%)

 High

dispersion 

(middle range 

= 30% or more)

Medium 

dispersion 

(middle range 

= 20-30%)

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Women are a much larger proportion of the production work force

in low-paying industries

Women usually make up a majority of the production 

workers in low-paying manufacturing industries but less 

than 15 percent in the high-paying group. Exceptions are 

leather tanning and structural clay products—two 

low-paying industries in which women constitute only 

one-fourth of the production work force.

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Chart 26. Distribution of manufacturing industries by proportion of women

production workers

High-paying industries

50 or more ] 15 to 50 | | Under 15

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Relatively few industries have significant proportions of workers at or near

the Federal minimum wage

In the mid-1970’s, none of the high-paying industries had 

even 5 percent of their workers at or near the minimum 

wage, and only one-third of the low-paying industries had 

10 percent or more at or near the minimum.

Even in shirt manufacturing—the lowest paying industry 

studied—the proportion of workers within 5 cents of the $2 

minimum in 1974 (27 percent) was much less than the 

proportion near the $1.25 minimum 10 years earlier (40 

percent).

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Chart 27. Distribution of manufacturing industries by worker attachment to the

Federal minimum wage, mid-1970’s

High-paying industries

14

Percent of workers at or near Federal minimum:

| | Under 5

Low-paying industries

10 or more 5 to 10 Under 5

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Appendix A. BLS Occupational Wage Surveys

Four major types of surveys are conducted currently in the Bureau of 

Labor Statistics Office of Wages and Industrial Relations to provide 

information on straight-time earnings by occupation:

(1) Industry wage surveys in selected manufacturing and 

nonmanufacturing industries covering occupations peculiar to a 

particular industry; (2) area wage surveys in selected metropolitan 

areas (and, on a more limited scope, nonmetropolitan areas) 

covering occupations common to a broad spectrum of private 

industries; (3) a national survey of professional, administrative,

technical, and clerical pay in private industry; and (4) municipal

government wage surveys in large cities. Although differing in 

industrial, geographic, and occupational coverage, these surveys 

form an integrated program on occupational wages. A detailed 

description of these surveys is included in BLS Handbook of

Methods, Bulletin 1910, chapters 19 and 20, and BLS Measures of

Compensation, Bulletin 1941, chapters 2 and 3.

Scope of surveys

The scope of BLS occupational wage surveys as it relates to data 

depicted in this chartbook is summarized below.

Industrial scope. The four types of surveys taken together cover at 

least part of every industry division, except agriculture, forestry, and 

fishing. Major exclusions of area wage surveys—construction, 

government, and mining—are covered either by the industry surveys 

or by the municipal government surveys.

Geographic scope. Nationwide surveys are conducted for virtually 

all industries in manufacturing (with selected regional and area 

detail) and for the professional, administrative, technical, and 

clerical pay study. Area wage surveys are conducted in 70 Standard 

Metropolitan Statistical Areas selected on a probability basis to 

represent all such areas. Industry wage surveys limited to the union

sector are carried out in 60 to 70 cities with at least 100,000 

inhabitants. These cities also are selected on a probability basis to 

represent all cities of that size. Municipal government wage surveys 

are limited to the 26 U.S. cities with at least 500,000 inhabitants, 

with the addition of Atlanta.

Minimum establishment size. To obtain appropriate accuracy at 

minimum cost, most BLS occupational wage surveys establish a 

minimum employment size for establishments to be within the 

scope of the study. In area wage surveys, establishments employing 

fewer than 50 workers are generally excluded (fewer than 100 

workers in some large areas); for the white-collar salary survey, the 

minimum ranges from 100 to 250 depending on the industry 

division. Most industry wage surveys exclude establishments with 

fewer than 20 workers. No minimums are applicable to union and 

municipal wage surveys.

Establishment characteristics

Pay levels and pay relationships can be associated with many 

establishment characteristics, some significant and some marginal 

determinants of wage variation. Parts II and III highlight some of the 

most common of these—e.g. area and establishment employment 

size, establishment location, and the extent of unionization within 

an area or industry—covered by BLS occupational wage surveys. 

Nationwide industry wage surveys in manufacturing usually develop 

separate estimates by these characteristics, as well as by others 

such as type of product and/or process.

Wage and salary measures

The Bureau’s occupational wage surveys summarize a highly 

specific measure—the rate of pay for individual workers, excluding 

premiums for overtime and for work on weekends, holidays, and late

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shifts. Collecting data on individual workers permits the publication 

of the full earnings distribution and/or measures of central 

tendency, e.g. median and middle range, as illustrated in several 

charts in parts I and III. Union wage studies, unlike the other BLS 

occupational wage surveys, measure only the basic (minimum) wage 

rates found in labor-management agreements; they do not include 

individual worker earnings that may exceed /hese minimums.

Analytical approaches

A profile of wage-determining characteristics was developed in parts 

II and III for groupings of representative high- and low-paying areas 

and industries. Areas were selected, for example, based on their 

relative pay position for office workers and plant workers. High- or 

low-paying areas are those falling in the highest or lowest quartiles 

for (a) clerical and electronic data processing occupations and (b) 

maintenance and unskilled plant occupations. Earnings 

distributions were used in parts I and III to illustrate wage dispersion 

by occupation and industry as well as to focus on groups of workers 

at the lower end of the earnings array. Details on the preparation of 

individual charts are available upon request.

Sources

All except the following charts are based on data from the 

occupational wage survey program: Charts 1 and 3, Office of

Current Employment Analysis, Bureau of Labor Statistics; chart 2, 

Division of General Compensation Structures, Bureau of Labor 

Statistics; chart 17, Office of Employment Structure and Trends, 

Bureau of Labor Statistics; charts 18 and 19, Bureau of the Census.

Uses

Bureau data are often used by public agencies concerned with wage 

policy. These data also are used extensively in the private sector in 

connection with wage and salary determinations by employers or in 

the collective bargaining process. To the extent that wages are a 

factor, survey data also are considered by employers in locating new 

facilities and in estimating costs. Occupational counselors often 

use information on relative pay levels and trends in connection with 

career guidance.

Occupational wage surveys are not designed to supply mechanical 

answers to questions of pay policy. The applicability of survey 

results depends upon the selection and definition of industries, the 

geographic units for which estimates are developed, the 

occupations and associated items studied, and the reference dates 

of particular surveys. Depending upon specific needs, users may 

find it necessary to interpolate for occupations, industries, or areas 

not covered by the surveys.

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Appendix B. Selected Bibliography—Monthly Labor Review Articles

on Occupational Wage Structures

Baldwin, Stephen E., and Robert S. Daski. “Occupational Pay 

Differences Among Metropolitan Areas,” May 1976, pp.29-35.

Blackmore, Donald. “Occupational Wage Relationships in Metropolitan Areas,” December 1968, pp. 29-36.

Brown, Gary D. “ Discrimination and Pay Disparities Between White 

Men and Women,” March 1978, pp. 17-22.

Buckley, John E. “ Intraoccupational Wage Dispersion in 

Metropolitan Areas,” September 1969, pp. 24-29.

_______________ “ Pay Differences Between Men and Women in

the Same Job,” November 1971, pp. 36-40.

Cox, John H. “Time and Incentive Pay Practices in Urban Areas,” 

December 1971, pp. 53-56.

David, Lily Mary, and Toivo P. Kanninen. “Workers’ Wage in Construction and Maintenance,” January 1968, pp. 46-49.

Douty, H.M. “Wage Differentials: Forces and Counterforces,” 

March 1968, pp. 74-81.

Field, Charles, and Richard L. Keller, “ How Salaries of Large Cities 

Compare With Industry and Federal Pay,” November 

1976, pp. 23-28.

Gavett, Thomas W., and Arthur Sackley. “ Blue-Collar/White-Collar 

Pay Trends: Analysis of Occupational Wage Differences,” June 

1971, pp. 5-12.

Houff, James N. “Area Wages and Living Costs,” March 1969, pp. 

43-46.

Kanninen, Toivo P. “Coverage of Union Contracts in Metropolitan 

Areas,” July 1962, pp. 747-50.

Mason, Sandra L. “Comparing Union and Nonunion Wages in 

Manufacturing,” May 1971, pp. 20-26.

Mobley, Thomas C. “ Use of BLS Survey Data in Wage Setting at 

GPO,” April 1970, pp. 66-68.

Nilsen, Sigurd R. “ HowOccupational Mix Inflates Regional Pay 

Differentials,” February 1978, pp. 45-49.

Ober, Harry. “Occupational Wage Differentials, 1907-1947,” August 

1948, pp. 127-34.

Perloff, Stephen H. “Comparing Municipal Salaries with Industry 

and Federal Pay,” October 1971, pp. 46-50.

Rose, Arthur. “Wage Differentials in the Building Trades,” October 

1969, pp. 14-17.

Schwenk, Albert, “ Earnings Differences in Machinery Manufacturing,” 

July 1974, pp. 38-47.

_______________and Martin E. Personick. “Analyzing Earnings

Differentials in Industry Wage Surveys,” June 1974, pp. 56-59.

Stelluto, George L. “ Report on Incentive Pay in Manufacturing 

Industries,” July 1969, pp. 49-53.

_____________ “ Federal Pay Comparability: Facts to Temper The

Debate,” June 1979, pp. 18-28.

Zoltek, Robin, “Sharp Rise in 1978 White-Collar Pay Characterized 

by Wide Variations,” November 1978, pp. 37-39.

☆ U .S. GOVERNMENT PRINTING OFFICE : 1 9 7 9 - 0 - 3 0 5 - 7 8 2

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Bureau of Labor Statistics Regional Offices

Region I

1603 JFK Federal Building 

Government Center 

Boston, Mass. 02203 

Phone: (617)223-6761

Region II

Suite 3400 

1515 Broadway 

New York, N.Y. 10036 

Phone: (212)944-3121

Region III

3535 Market Street 

P.O. Box 13309 

Philadelphia, Pa. 19101 

Phone: (215)596-1154

Region IV

1371 Peachtree Street, NE. 

Atlanta, Ga. 30309 

Phone: (404)881-4418

Region V

9th Floor

Federal Office Building 

230 S. Dearborn Street 

Chicago, III. 60604 

Phone: (312)353-1880

Region VI

Second Floor

555 Griffin Square Building 

Dallas, Tex. 75202 

Phone: (214) 767-6971

Regions VII and VIM*

911 Walnut Street 

Kansas City, Mo. 64106 

Phone: (816)374-2481

Regions IX and X**

450 Golden Gate Avenue 

Box 36017

San Francisco, Calif. 94102 

Phone: (415) 556-4678

* Regions VII and VIII are serviced by Kansas City 

** Regions IX and X are serviced by San Francisco

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