Newmark's Door

One of my students asked why I didn't contact the BLS about the seemingly odd numbers they put out about what economics professors earn.

Good question. So I sent the post to the e-mail address the BLS helpfully provides for "NCS data questions" and I asked if they cared to make any comments. Here is the response I received:

Dear Sir or Madam,

The Bureau of Labor Statistics, National Compensation Survey (NCS) collects data on earnings and associated hours directly from employers (typically human resources professionals) either through a personal interview or telephone conversation. The data are collected in the manner that is most available from the employer, either an hourly rate or an aggregate salary and associated hours. In the case of teachers, data are most often provided as an annual salary and the hours worked associated with that salary. Usually hours are reported by a representive in the payroll or human resource office. We request that employers provide us with the appropriate hours that comprise all the duties of the occupation and we will use the hours (whether actual or estimated) that are supplied by the employing establishment.

Hourly earnings are just one means of comparing the wages of occupations. This method has the advantage of treating all occupations with a common denominator -- a single hour. Unfortunately, this method has the disadvantage of providing a distorted view of certain occupations that work unusual hours. Teachers, who often work only 9 or 10 months per year, are a commonly mentioned example of this problem. Other occupations such as outside sales workers and over-the-road truck drivers also have atypical work schedules. Because of this issue, comparisons of annual salaries might be more appropriate when considering certain occupations. The National Compensation Survey has available supplemental tables with annual occupational averages. See the Internet site for July 2003 estimates. In table 4-2 (PDF page 76 of 87 or actual document page 74) shows that university economics teachers make $97,136 annually not $135,000. Again, this figure could be a little high because of the collection difficulties inherent in the reporting of hours for salaried teachers.

If you still have questions about these data you can call (202) 691-6199 and one of our staff economists will gladly assist you.

Your tax dollars at work, again.