People are asking...

When compared with other occupations the hourly earnings for some occupations, such as teachers and airline pilots, seem higher than expected. Why is this?

Answer: Hourly earnings are just one means of comparing the wages of different occupations. This method has the advantage of treating all occupations with a common denominator — a single hour. Unfortunately, this method may not work well for certain occupations with unusual hours. Teachers who often work only 9 or 10 months per year are an example of this problem. Another example is the airline pilot occupation. In addition to flight hours, which are highly regulated and carefully recorded, airline pilots also spend time preparing for flights. The preparation time may not be as closely monitored as flight hours. In occupations such as these, total work hours may have to be estimated. Because of these issues, comparisons of annual salaries published by the National Compensation Survey (NCS) might be more appropriate when considering certain occupations.

The National Compensation Survey publishes the number of weekly and annual hours worked for occupations. How is the number of hours worked determined for occupations with unusual work schedules such as airline pilots and teachers?

Answer: The Bureau of Labor Statistics collects data on earnings and associated hours directly from employers (typically human resource professionals) either through a personal interview or telephone conversation. BLS requests that employers provide the appropriate hours that comprise all the duties of the occupation. The collection of hours is more difficult for some occupations than for others and in some cases an estimate must be accepted. In addition to flight hours, which are highly regulated and carefully recorded, airline pilots also spend time preparing for flights. In the case of elementary and secondary teachers, hours of work include preparation time, administrative time, and professional days. For college and university professors, research time and office hours are included with class time in the total number of hours worked.

Why do average wages and salaries for some occupations seem to fluctuate widely from year-to-year in the National Compensation Survey?

Answer: The estimates from the National Compensation Survey are derived from a scientifically selected probability sample. As a sample survey, the estimates are subject to sampling errors. The relative standard error, published for each estimate, indicates the precision with which an estimate approximates the average result of all possible samples. The estimates may also be affected by employment shifts among occupations and industries. Layoffs and hiring can also influence wage changes. For example, less tenured lower paid employees generally are laid off first; the result is a higher paid incumbent work force. Conversely, hiring a large number of new employees at the minimum rate for an occupation can lower average pay for the job, even though experienced workers are still earning the same, higher wages.

To measure compensation costs over time free from the influence of employment shifts among occupations and industries, the NCS produces the Employment Cost Index (ECI). The ECI, using a standard Laspeyres fixed-weighted index, is calculated with fixed employment weights unlike the method with which wage series are calculated. Designated as a principal Federal economic indicator, the ECI is the preferred method of measuring compensation changes. The ECI, however, does not publish series for individual areas or occupations.

Are there any tables that reflect the national compensation for men and women?

Answer: The National Compensation Survey does not produce wage estimates by sex or any other demographic characteristic. The BLS Current Population Survey uses data from a household survey conducted by the U.S. Census Bureau to produce data by demographic characteristics, including by sex. See ftp://ftp.bls.gov/pub/special.requests/lf/aat39.txt and www.bls.gov/cps/cpsaat39.pdf.

Where can I obtain statewide occupational survey data?

Answer: Statewide occupational pay data are available from the Occupational Employment Statistics (OES) survey. See www.bls.gov/oes/current/oessrcst.htm. The National Compensation Survey produces data for metropolitan areas and for the nation as a whole.

Where can I find wage differentials for specific cities?

Answer: The National Compensation Survey provides wage differential data showing how wages vary in metropolitan and nonmetropolitan areas throughout the United States. See www.bls.gov/ncs/ocs/compub.htm.

 

Last Modified Date: October 21, 2005