Attention Economy


Wednesday, May 1, 2019

Education and Entry into the Middle Class

Fascinating and highly informative:
U.S. college grads feel their grip on middle class loosening, student loan strains rising
“Gimbel found that the most unequal incomes now exist among financial services sales agents, medical doctors and real estate agents. Education, race, gender and age were relatively minor factors in the worsening wage equality within occupations. Among the more influential factors were the likelihood that workers are paid with bonuses, a concentration of high pay among superstar performers and unequal profits among employers. A computer programmer at Apple, for example, would be paid substantially more than a programmer for a much smaller or less profitable employer.
The top 10 percent of America’s lawyers earned more than $208,000 last year, which makes the profession look extremely lucrative. But the bottom 10 percent earned less than $58,200, an income that could make it difficult to repay law school debt
“People might seek to become a lawyer, doctor or financial adviser because they see big salaries,” Gimbel said. “But there is a lot of range in what those workers make. They need to remember that they could be one of the unsuccessful lawyers or real estate brokers.””

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For people without a college degree, finding work that offers decent pay can be a challenge. The solution may require a change in scenery.
“There may be good reasons for hospitals in Raleigh to require registered nurses to have a bachelor’s degree. The positions might involve more complex care requiring a higher level of skill. But the large disparity in educational requirements suggests that many employers are demanding more education than needed just because they can be more selective when they have a larger pool of workers to choose from.”