Decline in Real Median Annual Earnings of Men

Men of prime working age have not made any economic progress over the past 30 years, according to an analysis by the Social Security Administration. Among men aged 20 to 59, median earnings stagnated or declined between 1989 and 2019, after adjusting for inflation. Here are the numbers...

Real median annual earnings of men aged 20 to 29

2019: $26,830

1989: $26,830

Change: $0

Percent change: 0.0

Real median annual earnings of men aged 30 to 39

2019: $49,540

1989: $50,680

Change: -$1,140

Percent change: -2.2

Real median annual earnings of men aged 40 to 49

2019: $59,470

1989: $64,130

Change: -$4,660

Percent change: -7.3

Real median annual earnings of men aged 50 to 59

2019: $59,220

1989: $61,820

Change: -$2,600

Percent change: -4.2

Fortunately for the nation's families, the real median earnings of women increased during those years, more than making up for men's losses. The real median annual earnings of women aged 20 to 29 increased by $1,490 between 1989 and 2019. The earnings of women aged 30 to 39 grew by $6,520. Those for women aged 40 to 49 grew by $8,200, and the earnings of women aged 50 to 59 grew by $9,730.

Source: Social Security Administration, Earnings of Men Aged 20–59, 1989–2019 and Earnings of Women Aged 20–59, 1989–2019

Median Earnings by Educational Attainment, 2020

According to the Census Bureau's Current Population Survey, men who worked full-time, year-round in 2020 earned a median of $63,678—half earned more and half earned less. Here are the medians for men by educational attainment...

Median earnings of men who work full-time by educational attainment, 2020

  $36,423: less than 9th grade

  $37,413: 9th to 12th grade, no diploma

  $49,661: high school graduate only

  $56,267: some college, no degree

  $61,100: associate's degree

  $81,339: bachelor's degree

$101,130: master's degree

$131,268: doctoral degree

$150,509: professional degree

 

Among all women who work full-time, year-round, median earnings were $51,869 in 2020. Median earnings ranged from a low of $26,591 for women with less than a 9th grade education to a high of $110,717 for women with a professional degree.

Source: Census Bureau, Historical Income Tables: People

The Decline in Men's Earnings, 1988—2018

The earnings of men are not what they used to be. According to data collected by the Social Security Administration, here is how the earnings of men aged 20 to 59 have changed in the past 30 years, from 1988 to 2018 (in 2018 dollars)...

Median annual earnings of men in 2018 (and percent change since 1988; in 2018 dollars)

Aged 20 to 29: $25,507 (-5.4%)

Aged 30 to 39: $47,895 (-6.4%)

Aged 40 to 49: $57,779 (-10.5%)

Aged 50 to 59: $57,518 (-7.3%)

Note: Earnings are all wages, salaries, and self-employment income in Social Security covered and non-covered employment including earnings that exceed the annual taxable maximum. 

Source: Social Security Administration, Earnings of Men Aged 20-59, 1988—2018

Facts about the Minimum Wage in 2020

The federal minimum wage is $7.25/hour, a level unchanged since 2009.   

Most states now have a minimum wage higher than the federal minimum. 

Among all workers paid by the hour, 1.5 percent earned the minimum or less—1.1 million workers in 2020. 

Among workers paid minimum wage or less, 43 percent are in the prime working age group of 25 to 54. 

Among workers paid the minimum wage or less, 85 percent have a high school diploma or more education. 

Among workers paid the minimum wage or less, 60 percent work in the leisure and hospitality industries. Among workers paid by the hour in the leisure and hospitality industries, 8 percent earn the minimum wage or less. 

Among workers paid the minimum wage or less, 54 percent work in food preparation and serving occupations. Among workers paid by the hour in food preparation and serving occupations, 11 percent earn the minimum wage or less. 

By state, workers who are paid by the hour are most likely to earn minimum wage or less in South Carolina (4.4 percent), Louisiana (3.4 percent), Mississippi (2.8 percent), Virginia (2.7 percent), and Alabama (2.5 percent), 

Source: Bureau of Labor Statistics, Characteristics of Minimum Wage Workers, 2020

The Financial Impact of Covid-19

If the coronavirus caused you to miss work for at least two weeks, would you continue to get paid? Only 36 percent of employed Americans answered yes to this question, according to a Pew Research Center survey. The 54 percent majority said they would not get paid, and the remaining 10 percent were not sure. Workers with the highest household incomes were most likely to say they would continue to get paid. Most of those with the lowest incomes said they would not get paid and as a consequence they would have difficulty keeping up with their basic expenses...

Percent of the employed who said they would not get paid and it would be difficult to keep up with basic expenses if they missed at least two weeks of work because of the coronavirus, by family income:

11% of those with incomes of $100,000 or more
23% of those with incomes of $75,000 to $99,999
27% of those with incomes of $50,000 to $74,999
45% of those with incomes of $30,000 to $49,999
52% of those with incomes below $30,000

Source: Pew Research Center, U.S. Public Sees Multiple Threats from the Coronavirus—and Concerns are Growing

Women Who Earn $100,000 or More

Among the 48 million women who work full-time, year-round, 1.4 million had median earnings of $100,000 or more, according to the Census Bureau's 2018 American Community Survey. These high earners account for just 3 percent of all women who work full-time. Among men who work full-time, 10 percent have median earnings of $100,000 or more.

Women's median earnings surpass $100,000 in 19 occupations. Men's median earnings top $100,000 in 44 occupations.

Among the 19 occupations in which women earn a median of $100,000 or more, 12 are in the health care field. Number one is emergency medicine physician. Here are all 19...

Occupations in which women who work full-time earn a median of $100,000 or more
$250,000 or more: Emergency medicine physician
$237,500: Surgeon
$226,554: Radiologist
$180,500: Other physician
$160,778: Nurse anesthetist
$149,310: Dentist
$131,819: Architectural/engineering manager
$120,857: Pharmacist
$120,703: Actuary
$120,420: Podiatrist
$112,862: Chief executive
$110,619: Lawyer
$103,570: Physician assistant
$101,863: Nurse practitioner
$101,454: Mathematician
$101,141: Nurse midwife
$100,852: Optometrist
$100,131: Computer and information systems manager
$100,089: Computer hardware engineer

Source: Census Bureau, Full-Time, Year-Round Workers and Median Earnings

24% of Workers Do Not Have Paid Sick Leave

As the coronavirus threatens to keep many Americans at home, now is the time to review paid sick leave in the United States. While 76 percent of the nation's workers have paid sick leave, 24 percent do not. They can't stay home without a pay cut. Here is the percentage of workers in 2019 without paid sick leave by occupation and earnings...

Workers without paid sick leave by major occupational group
39% of workers in service occupations
36% of workers in sales occupations
32% of workers in natural resources, construction, or maintenance occupations
30% of production workers
10% of professional workers
  6% of workers in management, business, and financial occupations

Workers without paid sick leave by average wage
69% of workers with wages in the bottom 10 percent
49% of workers with wages in the lowest 25 percent
21% of workers with wages in the second 25 percent
12% of workers with wages in the third 25 percent
  8% of workers with wages in the highest 25 percent
  6% of workers with wages in the top 10 percent

Source: Bureau of Labor Statistics, Employee Benefits in the United States Summary

New Reality for Manufacturing Jobs

Times have changed. No longer are manufacturing jobs the relatively high-paying opportunities they once were, according to a Bureau of Labor Statistics' analysis of trends in earnings by industry. Although "the pay earned by production workers in manufacturing has long served as a marker for what constitutes middle-class status in the United States," says the BLS, "that status has changed." Manufacturing workers in the U.S. now earn less than the average private sector worker. In 1990, they earned 106 percent of the average. By 2018, the figure had fallen to 95 percent.

Some manufacturing workers have endured outright declines in hourly and weekly earnings. Those in the motor vehicles and parts industry, for example, saw their average hourly earnings fall 20 percent between 1990 and 2018, after adjusting for inflation. Their average weekly earnings fell 14 percent.

Not all manufacturing jobs have lost ground, however. Earnings have grown strongly since 1990 for petroleum and coal production workers. The 2018 average hourly earnings of $40.32 for these workers was well above the $22.71 for all private sector workers. Other industries in which manufacturing workers still earn more than the average private sector worker include computer and electronic parts, transportation equipment, and chemicals.

Source: Bureau of Labor Statistics, The Relative Weakness in Earnings of Production Workers in Manufacturing

Gaping Holes in the Safety Net

Gig workers have become a controversial symbol of the gaping holes in the American safety net. Behind the outrage over gig work is our employer-based benefit system, which excludes independent contractors from medical benefits, retirement savings, and other protections. Independent contractors aren't the only ones who are on their own. Most low-wage workers are too...

Percentage of workers whose employer provides medical care benefits, by average wage quartile
Highest: 94%
Third: 88%
Second: 74%
Lowest: 40%

Percentage of workers whose employer provides retirement benefits, by average wage quartile
Highest: 90%
Third : 84%
Second: 70%
Lowest: 46%

Source: Bureau of Labor Statistics, Employee Benefits in the United States—March 2019

Men's Earnings: Explaining Differences in Trajectory

Why do some workers enjoy rising incomes over their career while other workers can't seem to make any gains? That question was posed by researchers at the Federal Reserve Bank of New York. They examined W-2s and self-employment income of men at ages 25 and again at 55 to see how their earnings grew over the decades. For the median worker, real annual earnings grew 60 percent. But workers below the 20th percentile in earnings had lower earnings at age 55 than they did at age 25. Meanwhile, those in the top 1 percent saw their earnings increase by a factor of 27.

The researchers found several differences in the labor force experience of low- and high-income workers that could affect the earning trajectory of men over their career...

• low-income workers lose their jobs more frequently
• low-income workers have longer spells of unemployment
• low-income workers are less likely to be contacted about alternative job opportunities 

Although high-income workers receive more alternative job offers than low-income workers, they are less likely than low-income workers to switch jobs. "Even though high earners are solicited more often, these solicitations do not always translate into job-to-job switches," say the researchers. "In fact, top income earners are much less likely to switch jobs. While we do not know the particular reason for this behavior, it can be the result of either the earner already having a high-paying job or the current employer responding to the risk of losing its worker."

Source: Federal Reserve Bank of New York, Liberty Street Economics, Job Ladders and Careers

Is College Still Worth the Cost?

Yes, says the Federal Reserve Bank of New York in an analysis on its Liberty Street Economics Blog. Despite the rising cost of college, the rate of return for a bachelor's degree exceeds the rate of return for other investments.

The average college graduate with a bachelor's degree earns 75 percent more than the average worker with only a high school diploma, say researchers Jaison R. Abel and Richard Deitz—an average of $78,000 for the college graduate versus $45,000 for the high school graduate. The earnings premium has been in the $30,000 to $35,000 range since 2000. The researchers estimate a rate of return for a bachelor's degree of about 14 percent—much greater than the 7 percent rate of return for stocks or the 3 percent for bonds. While the rate of return has declined slightly in the past few years due to rising costs, the researchers conclude: "our analysis suggests that college remains a good investment, at least for most people."

But the rate of return is not as high for some, the researchers warn. In particular, the rate of return may not be worth it for those who do not complete a degree, those who take longer than four years to earn a degree, and "the bottom 25 percent of those who made the investment."

Source: Federal Reserve Bank of New York, Despite Rising Costs, College Is Still a Good Investment

Differences in Earnings of Husbands and Wives

How do husbands and wives compare in earnings? Not surprisingly, most husbands earn more. In 2018, the 54 percent majority of husbands earned at least $5,000 more than their wives...

Earnings difference between husbands and wives, 2018
54% of husbands earn at least $5,000 more than their wives
25% of husbands and wives earn within $4,999 of one another
20% of wives earn at least $5,000 more than their husbands

These figures have changed some since 2000. The percentage of husbands who earn at least $5,000 more than their wives fell from 59 percent in 2000 to the 54 percent of today. The percentage of wives who earn at least $5,000 more than their husbands grew from 15 percent in 2000 to the 20 percent of 2018. The 25 percent of husbands and wives who earn within $4,999 of one another in 2018 is almost identical to the 26 percent of 2000.

Source: Demo Memo analysis of the Census Bureau's Families and Living Arrangements 2018

Highest Paying Occupation by Education, 2017

Want your children or grandchildren to make a lot of money? The Bureau of Labor Statistics has suggestions for them, depending on how long they want to stay in school. It has identified the occupations with the highest annual wage for each educational attainment category. Not only that, the BLS has projected the number of job openings for those occupations during the 2016 to 2026 time period.

Doctoral or professional degree: Anesthesiologist
Mean annual wage: $265,990
Job openings 2016–26: 1,400

Masters degree: Nurse anesthetist
Median annual wage: $165,120
Job openings 2016–26: 2,800

Bachelor's degree: Chief executive
Median annual wage: $183,270
Job openings 2016–26: 20,000

Associate's degree: Air traffic controller
Median annual wage: $124,540
Job openings 2016–26: 2,400

Postsecondary nondegree award: Electricial repairer, powerhouse, substation, and relay
Median annual wage: $78,140
Job openings 2016–26: 2,100

High school diploma: Nuclear power reactor operator
Median annual wage: $93,370
Job openings 2016–26: 500

No formal educational credential: Mine shuttle car operator
Median annual wage: $56,890
Job openings 2016–26: 100

Note that many of these occupations do not have a lot of openings projected for the decade ahead. Not to worry. The BLS has alternatives. Here are the occupations near (but not at) the top of the pay scale in each educational attainment category that will have the most job openings in the decade ahead, from highest educational attainment to lowest: family practitioner (5,600 openings, $208,560); physician assistant (10,600 openings, $104,860); financial manager (56,900 openings, $125,080); dental hygienist (17,500 openings, $74,070); aircraft mechanic and service technician (10,900 openings, $61,020); detective (7,500 openings, $79,970); service unit operator, oil, gas, and mining (6,400 openings, $48,290).

Source: Bureau of Labor Statistics, High-Wage Occupations by Typical Entry-Level Education, 2017

Decline in Median Earnings of Female College Graduates

The earnings of 25-to-34-year-olds who work full-time are lower today than they were in 2000 in almost every educational attainment group, according to a National Center for Education Statistics' analysis of the Current Population Survey. This is true for both men (see post) and women.

In 2016, the median earnings of women aged 25 to 34 with a bachelor's degree who worked full-time were 7 percent below the median earnings of their counterparts in 2000. Young adults know that a college degree guarantees them higher earnings than their less-educated peers. What they don't know is that a degree does not guarantee higher earnings than their college-educated counterparts in the past. Today's college graduates have less money to pay off much larger student loans.

Among all women aged 25 to 34 who work full-time, median earnings increased 1 percent between 2000 and 2016, after adjusting for inflation—rising from $37,620 to $38,000. But by educational attainment, only high school dropouts saw their median earnings rise during the time period. The biggest earnings decline occurred among women with some college. Their median earnings fell 14 percent between 2000 and 2016, after adjusting for inflation.

Median earnings of women aged 25 to 34 who work full-time by education, 2016 (and percent change in earnings since 2000; in 2016 dollars)
$21,900 for those who did not graduate from high school (+5.0%)
$28,000 for high school graduates only (–7.2%)
$29,980 for those with some college, no degree (–13.8%)
$31,870 for those with an associate's degree (–12.0%)
$44,990 for those with a bachelor's degree (–7.5%)
$57,690 for those with a master's or higher degree (–0.5%)

Source: National Center for Education Statistics, The Condition of Education, Annual Earnings of Young Adults

Decline in Median Earnings of Male College Graduates

The earnings of 25-to-34-year-olds who work full-time are lower today than they were in 2000 in almost every educational attainment group, according to a National Center for Education Statistics' analysis of the Current Population Survey.

Young people well know that a college degree guarantees them higher earnings than their less-educated peers. What they may not know is this: a degree doesn't guarantee them higher earnings than their college-educated counterparts in the past. As of 2016, the median earnings of men aged 25 to 34 with a bachelor's degree who worked full-time were 9 percent below the median earnings of their counterparts in 2000. Today's college graduates have less money to pay off much larger student loans.

Among all men aged 25 to 34 who work full-time, median earnings fell 2 percent between 2000 and 2016, after adjusting for inflation—from $44,880 to $43,970. By educational attainment, only high school dropouts saw their median earnings rise during the time period. The biggest earnings decline occurred among men with only some college, whose median earnings fell 14 percent between 2000 and 2016, after adjusting for inflation.

Median earnings of men aged 25 to 34 who work full-time by education, 2016 (and percent change in earnings since 2000; in 2016 dollars)
$28,560 for those who did not graduate from high school (+2.8%)
$34,750 for high school graduates only (–13.6%)
$37,980 for those with some college, no degree (–14.3%)
$43,000 for those with an associate's degree (–11.8%)
$56,960 for those with a bachelor's degree  (–8.8%)
$71,640 for those with a master's or higher degree  (–6.4%)

Source: National Center for Education Statistics, The Condition of Education, Annual Earnings of Young Adults

Earnings Rise, but It Feels Like a Loss

Men without a bachelor's degree earn more than their counterparts did several decades ago, reports Stephen J. Rose of the Urban Institute in a recent analysis. But the rise in their earnings feels like a loss because they are losing ground relative to the rest of the workforce.

Take a look at the growing gap between the earnings of men with and without a bachelor's degree: Men with a bachelor's degree earned 50 percent more than those without a degree in 1980, says Rose. The gap grew to 81 percent by 2000. It climbed to 119 percent in 2015. Ouch. Because the earnings of men without a bachelor's degree are growing much more slowly than the earnings of college graduates, their standard of living is in relative decline.

In the past, says Rose, a middle-class lifestyle was achieved by owning a 1,000 square foot home with a single bathroom. Today, it requires owning "a 2,000 square foot house with air conditioning and multiple bathrooms, bigger and more appliances, TVs, computers, cell phones, and other amenities not available in the past." The earnings of working men without a college education are enough to achieve the modest middle-class lifestyle of yesterday. But they are not enough to achieve the middle-class lifestyle of today. "Plainly, the norms of today's middle-class life...require more money," says Rose.

Source: Urban Institute, Manufacturing and the Economic Position of Men without a College Degree

Workers with Median Annual Earnings of $100,000+

The Bureau of Labor Statistics divides the U.S. workforce into more than 800 individual occupations, and it tracks the earnings of workers in each one. In 2017, median annual earnings by occupation ranged from a low of $19,820 for "gaming dealers" to a high of $198,740 for "family and general practitioners." Median annual earnings were a modest $37,690 for all workers in 2017.

Of the 800-plus occupations, 51 have median earnings that exceed $100,000 a year. This high-earner club is composed of the usual suspects—CEOs, medical professionals, computer scientists, lawyers, and so on. But also on the list are air traffic controllers, political scientists, and astronomers.

The highest of high earners are the eight occupations with median annual earnings of $150,000 or more.  Notice how often dentists appear in this list...

Median annual earnings of $150,000 or more
$198,740: family and general practitioners
$192,930: internists
$190,840: specialty dentists (except prosthodontists)
$185,150: prosthodontists
$183,270: CEOs
$172,650: pediatricians
$165,120: nurse anesthetists
$151,400: general dentists

Source: Bureau of Labor Statistics, Employment and Wages by Occupation, May 2017

Digital Economy is 6.5% of GDP

How big is the digital economy? If you've been trying to figure this out, you're in luck. The Bureau of Economic Analysis has produced the first estimates of the size of the digital economy "within the framework of the national accounts." Of course, defining what is and is not a part of the digital economy is a difficult task, and the BEA struggles with it. This first estimate includes only goods and services that are exclusively or primarily digital. It excludes the IoT (internet of things). And the BEA invites the public to improve upon its work, providing an email address for feedback.

• In 2016, the digital economy accounted for 6.5 percent ($1,209.2 billion) of the nation's $18,624.5 billion GDP. It ranks 7th among industries in its share of GDP—just above wholesale trade and just below professional, scientific and technical services.  
• The digital economy accounted for 5.9 million jobs in 2016, or 3.9 percent of the total. The digital economy's share of employment is lower than in its share of GDP, ranking 12th among industries in employment. 
• The digital economy pays more than the average industry. Workers in the digital economy earn an average annual compensation of $114,275, much higher than the $66,498 annual compensation for the average worker.

Source: Bureau of Economic Analysis, Defining and Measuring the Digital Economy

Men's Wages Are Increasingly Unequal

Trends in the real wages of men tell a story of growing inequality, according to an analysis by Patrick J. Purcell in Social Security Bulletin. Between 1981 and 2014, says Purcell, "the wage distribution became more unequal as wage growth in the top 10 percent of earners substantially outpaced the rate of growth for earners below the 90th percentile."

Real annual wage of men aged 25 to 59 by income percentile, 2014 (% change since 1981)
10th percentile: $13,387       (+3.8%)
25th percentile: $25,339       (–2.0%)
50th percentile: $45,000       (+4.7%)
75th percentile: $75,413      (+22.1%)
90th percentile: $121,763    (+50.7%)
99th percentile: $392,250  (+117.7%)

For all men, median real wages (50th percentile) climbed just 4.7 percent during those years. For men at the top of the wage distribution, real wages more than doubled.

Source: Social Security Bulletin, Trends in Men's Wages, 1981–2014

Among Men, Higher Earnings = Wedding Bells

The more men earn, the more likely they're married, according to Census Bureau data. The percentage of all men who are currently married ranges from a low of 37 percent for those with earnings below $15,000 to a high of 79 percent for those earning $100,000 or more. The pattern is the same in every age group of men from 25 to 64. These are the numbers for men aged 30 to 34...

Percent of men aged 30 to 34 who are married by personal earnings, 2017
Less than $15,000: 26%
$15,000 to $24,999: 40%
$25,000 to $39,999: 42%
$40,000 to $74,999: 55%
$75,000 to $99,999: 66%
$100,000 or more: 67%

Source: Census Bureau, America's Families and Living Arrangements