! "






 	
	

		



		


	 
  #  	 



$ !$	
"

	

# 	

% 
    	

	
	

$


&  
 		
 

$%	
	




	
	

	
$%	






	%


	 
#'
	



	(	

)

	 
 %

 %	 	



		
#

'%






		 
  $ 


!  	
 "

	
(	

)



		

#

*
$

  	 	   

	
	





		
	
	




$# 


 	  

 

	






	









	

 !" #	


$


%






&&







	



'%  (  

)*   * +%

*%

	%



,%




*

 
   

*

,   



 
 

*

 % 
 (

)*

%


	

 	

   

  

 	  	 

    

 !  "
  !#

$	

% 

 &'(') *+, -.'-

 &'(') *+, *'/-

0 % 

12#	3

12#	3

	
%4



 
4 $56# 

3   	
	
	



TABLE 2. Incidence of employment in sales occupations and jobs with incentivepay provisions in U.S. private industry, by major industry, March 1997

 All private Industry ................... 9.9 25.2 6.9 46.2

Construction .................................. 1.2 47.9 1.6 35.2

Manufacturing................................ 1.6 20.0 3.7 8.6

Transportation ............................... 1.9 39.4 9.1 8.4

Public utilities ................................. 7.7 60.4 7.2 64.8

Wholesale trade ............................ 19.7 40.3 12.2 64.8

Retail trade .................................... 42.0 14.9 8.9 70.6

Finance, insurance, and

 real estate .................................... 8.2 58.4 7.9 61.1

All services .................................... 6.1 32.3 5.4 38.1

 Business services ................... 7.1 56.0 6.9 58.0

Sales jobs Incentive-pay jobs

Percent of

industry

employment

Percent with

incentivepay

provisions

Percent of

industry

employment

Percent in

sales

occupations

  
   





 -   .%

  -   

.% -


 
 
  

.,



*

   
 




-

.

/*






  





 !" 

%









  '%  
 %














Incidence of incentive pay in U.S.

private industry

0 
 

*

  

1&

1
02




-'%




.,




*








/	




%
 &+

%





3   4!4 


  



 &'%




-.







 &%$4

	-

%%3

 % % 

3  

.





%

%*

	


  

  4% 

   
  &,




-
.









*

%


-.





 



*

,%

%




!5


 &%




*

 




TABLE 1. Distribution and incidence of incentive-pay compensation provisions in

U.S. private industry employment, by major occupational group, March 1997

Professional and technical .................................. 1.5 3.2

Executive, administrative, and managerial......... 6.1 7.9

Sales occupations ............................................... 25.2 46.2

Administrative support, including clerical ........... 1.5 4.2

Precision production, craft, and repair ............... 7.2 11.1

Machine operators, assemblers, and

 inspectors .......................................................... 8.4 10.6

Transportation and material

 moving occupations .......................................... 16.2 10.8

Handlers, equipment cleaners, helpers,

 and laborers ...................................................... 2.1 2.7

Service occupations, except private

 household .......................................................... 1.5 3.2

1

 Percent of total employment in the occupational group.

2

 Percent of all private industry employment in jobs with incentive-pay provisions.

Occupational group Incidence1 Distribution2
	
	



	




, 4   






*

,


   

 %







,

*

*

  



6   

 4 
 	


%






*   

7  

   

%  







 
 

  


,









Derivation of the experimental ECI

series

,







   

% 





 ,    

#%




  








,






 
  + 


% *  

*

%   % 




%&48




 -8*  

&4.


%

     

-

%

	%	


.


9%



  
 



9


 %

    




* ,








,







-


	.%





	

'% 8/

22%

  
 



%




6


%




*


&48

,



'%





   


  

*

:%

* 

&


 %   

% 
  

%*


 


*

+%   * 


   

 
 





 
*% 






* + 


*






%







	

 % 

  


*




*





%




,
%

*   






+
%

* 
  








,





8 !%8
48

$

;

,
$





%85&

85!%

,%














*


*

6
$

  





 !" 




0%




*







	

,

4







Results by occupation and

industry

4<





*


*




%
=

%

%

*

!  
 

 -,   	
	



0 0.2 0.4 0.6 0.8 1 1.2 1.4

Service occupations, except private households

Handlers, equipment cleaners

Transportation and material moving

Machine operators, assemblers and related

Precision productionm craft and repair

Administrative and clerical

Sales occupations

Executive, administrators and managerial

Professional and technical

All private industry occupations

Experimental ECI

0

0.2

0.4

0.6

0.8

1

1.2

1.4

Mar95Jun95Sep95Dec95Mar96Jun96Sep96Dec96Mar97Jun97Sep97Dec97Mar98Jun98Sep98Dec98Mar99Jun99Sep99Dec99

All private industry Excluding sales occupations

CHART 1. Three-month percent changes in the ECI wage and salary index for private industry,

March 1995-December 1999

Percent change

All private industry Excluding sales occupations

CHART 2. Volatility of ECI vs. Experimental Index, by major private industry occupations,

March 1995-December 1999

Quarter

Mar.

1995

Sept.

1995

Mar.

1996

Sept.

1996

Mar.

1997

Sept.

1997

Mar.

1998

Sept.

1998

Mar.

1999

Sept.

1999

1.4

1.2

0.1

0.8

0.6

0.4

0.2

0

All private industry occupations

Professional and technical

Executive, administrative, and managerial

Sales occupations

Administrative support, including clerical

Precision production, craft, and repair

Machine operators, assemblers, and related

Transportatiion and material moving

Handlers, equipment cleaners

Service occupations, except households

Standard deviation of 3-month percent changes

0 0.2 0.4 0.6 0.8 1 1.2 1.4

Experimental ECI
	
	



	




0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6

Business services

All services

Finance, insurance and real estate

Retail trade

Wholesale trade

Public utilities

Transportation

Manufacturing

Construction

All private industry

Experimental ECI

-1

-0.5

0

0.5

1

1.5

2

2.5

3

3.5

Mar95Jun95Sep95Dec95Mar96Jun96Sep96Dec96Mar97Jun97Sep97Dec97Mar98Jun98Sep98Dec98Mar99Jun99Sep99Dec99

 Series excluding sales occupations Series excluding incentive pay jobs

CHART 4. Three-month percent changes in the ECI wage and salary index, finance, insurance, and

real estate industry, March 1995-December 1999

Quarter

Mar.

1995

Sept.

1995

Mar.

1996

Sept.

1996

Mar.

1997

Sept.

1997

Mar.

1998

Sept.

1998

Mar.

1999

Sept.

1999

3.5

Percent change

3

2.5

2

1.5

1

0.5

0

-0.5

-1

Series excluding incentive pay jobs

CHART 3. Volatility of ECI vs. Experimental Index, by major industries, March 1995-December 1999

Experimental ECI

0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6

All private industry occupations

Construction

Manufacturing

Transportation

Public utilites

Wholesale trade

Retail trade

Finance, insurance, and real estate

All services

Business services

Series excluding sales occupations

Standard deviation of 3-month percent changes
	
	






  . ,

   


*


,






%%



$






*









3%

,

  



%%



Comparisons with ECI series

excluding sales occupations

,




*

-%

	.7

**



%


  




,$


3 


 3

3
%%



%







%


*


*-24.



%



*




	




,   



%%
%

%%

 







 
   




-

$.,



%

%

>

%

%



	



 	  ,%

 * *

    

%








!> !

>" 

   	


















*" 



 *1()

*1




7<






*%





902

%









'%






**

3 *   

 % 

*

 *,% 

*

*<








 7  # 08" 

 	

"
 '9,9 &
 

  !# $" $# ,++')"

	:	 

  ,++. 433 

; ;  3

TABLE 3. Comparisons of selected ECI wage and salary series excluding sales

occupations with series excluding jobs with incentive-pay provisions, 3-month

percent changes, March 1995-December 1999

All private industry employment..................................... 0.88 0.22

Series excluding sales occupations .............................. .86 .17

Experimental series excluding incentive-pay jobs ........ .82 .16

All nonmanufacturing white collar employment ............. .93 .33

Series excluding sales occupations .............................. .91 .27

Experimental series excluding incentive-pay jobs ........ .86 .24

All wholesale trade employment .................................... 1.01 .55

Series excluding sales occupations .............................. 1.00 .33

Experimental series excluding incentive-pay jobs ........ .91 .32

All finance, insurance, and real estate employment ..... 1.21 1.22

Series excluding sales occupations .............................. 1.16 .91

Experimental series excluding incentive-pay jobs ........ .92 .44

1

 Mean 3-month percent change in index.

2

 Standard deviation of 3-month changes in index.

Average wage

growth1

(in percent)

Volatility

measure2

 + ,(	 $# ,   

  3	  

 3  43

#	 

  3    

; 43 #  3

    # ,++9	 

   4  < 

 # 3   

    	

Wholesale trade

Finance, insurance, real estate

Nonmanufacturing white-collar occupations

All private industry