Who Gets the Good Jobs and How Much They Pay1

Table 1
Higher Tier Jobs Require More Education and Higher Functional Literacy

Occupation Tiers by Average Years of Education

Tier 1 jobs average
10.5 or less

Tier 2 jobs average
10.6 - 12.0

Tier 3 jobs average
12.1-14.5

Tier 4 jobs average
>14.5

Row
Score


Highest Level Completed
1992 Weighted Average Functional Literacy Scores2
High school dropouts 232 249 266 244
Only high school diploma/GED 267 285 293 301 283
Some university 291 301 313 326 308
University degree 301* 316* 331 343 335
Tier Score 264 286 311 338 301
Data is from Table 3.5 of Who's Not Working and Why.  A blank means insignificant sample data.
* "...it is those college-educated workers with functional literacy little better than the average high school graduate who end up in these lower-level jobs." page 48 of Who's Not Working and Why
 

Table 2
Higher Tiers Jobs Pay More and
Vocational Training Helps Some More Than Education

Occupation Tiers by Average Years of Education
of Prime Age Workers3


Education

 Tier 1 jobs
10.5 or less

Tier 2 jobs
10.6 - 12.0

Tier 3 jobs
12.1-14.5

Tier 4 jobs
>14.5

All Tiers


Highest Level Completed
1994 median hourly wages for men
High school dropouts $7.21 $8.82 $10.13 little data $7.704
Only high school diploma/GED 9.89 11.32 12.64 15.56 11.05
Some university/trade/vocational schools 10.40 12.61 14.39 16.68 12.91
University degree or more 10.02 12.31 18.08 20.16 18.02
Tier Wage 9.23 11.53 15.13 19.23 12.60

Highest Level Completed
1994 median hourly wages for women
High school dropouts 5.67 5.61 7.40 8.61 5.79
Only high school diploma/GED 6.40 6.66 9.61 9.90 8.00
Some university/trade/vocational schools 6.87 7.50 10.56 11.08 9.61
University degree or more 6.58 7.28 14.42 15.17 14.41
Tier Wage 6.24 6.73 10.85 14.15 9.61
Data is from Table 5.1 of Who's Not Working and Why.

Table 3
Prime Age Workers With Education Are Taking Lower Tier Jobs

Occupations Tiers by Average Years of Education

Tier 1 jobs
10.5 or less

Tier 2 jobs
10.6 - 12.0

Tier 3 jobs
12.1-14.5

Tier 4 jobs
>14.5

Row
Total

Formal Education Completed 1971 percentages by row
High school dropouts 54.1 32.0 13.3 0.6 100.0
Only high school diploma/GED 23.2 32.7 41.2 2.9 100.0
Some university 8.9 20.5 59.4 11.2 100.0
University degree 1.2 4.5 34.6 59.7 100.0
Tier Percentage 26.4 26.2 34.6 12.9 100.0

Formal Education Completed

1995 percentages by row

High school dropouts 58.2 29.5 11.5 1.0 100.0
Only high school diploma/GED 30.1 30.9 36.1 2.9 100.0
Some university 14.1 25.0 53.2 7.7 100.0
University degree 2.9 6.6 45.5 45.0 100.0
Tier Percentage 19.9 21.9 41.6 16.6 100.0
Data is from Table 3.4 of Who's Not Working and Why.

What Should Potential Students Do,
Advice From www.businessbookmall.com.

I. Advice will center on economic concerns, analysis of the non-economic benefits associated with education will be left for another time.
II. What should average high school students do.
A. The median score for someone whose highest degree is from high school had an average score for the three National Adult Literacy Tests of approximately 2705.
B. People with functional literacy near the middle of their high school class usually end up in low paying Tier 1 and Tier 2 occupations.
C. The exception is people who have some university/trade/vocational schooling. They have high paying Tier 1 and Tier 2 occupations and earn more than college graduates working in Tier 1 and Tier 2 occupations. A list of the Tier 1 and Tier 2 occupations and what they pay would be extremely interesting!
D. These students should try and measure their special intelligenceTM, determine how it relates to trade/vocational schooling, determine how it relates to what they like to do, and investigate vocational training as a means of enhancing their career potential. For more on special intelligence see Education in a World of Multiple Intelligence located at www.businessbookmall.com.
III. What should good students do.
A. The median score for someone whose highest degree is from college had an average score for the three National Adult Literacy Tests of approximately 3225.
B. Since the average test score for Tier 3 is 311 and the average test score for Tier 4 is 338, the median college graduate ends up somewhere between the two tiers.
C. The real earnings of many college graduates decreased substantially between 1971 and 1995 (see Education Goes Up For All, Income Goes Up For Some Women at www.businessbookmall.com ). As a result, the politically correct answer of go to college may only be appropriate for academically oriented high school graduates.
D. For academically oriented students, investigating college is important. A good place to begin is Not All College Majors Are Created Equal located at www.businessbookmall.com.
IV. Students in between trade/vocational and college should consider the following:
A. Begin by looking at Many Without A Bachelors Degree Have High Earnings
 located at www.businessbookmall.com.
B. Talents of the student as they relate to both trade/vocational school and college.
C. The desires and maturity of the student.
D. Family income
E. Attending a local college part-time for a while.
F. The military
1I. Tables, with minor adjustments, are from Wko's Not Working and Why. (ISBN 0521651522).
Table names are from www.businessbookmall.com.
A. Authors: Economists Frederic L. Pryor of Swarthmore College and David L. Schaffer of the University of Wisconsin at Eau Clair
B. Publisher: Cambridge University Press, 1999
II. Primary data sources used by authors
A. Current Population Surveys of the Census Bureau from 1970 through 1996 with the earlier surveys adjusted for changes in occupational definitions.
B. National Adult Literacy Survey of 1992
C. Prime Age Workers are 25-49.

2For a brief summary of The National Adult Literacy Survey visit www.businessbookmall.com and view the document Education Helps Some More Than Others.
3Prime Age Workers are 25-49.
4Bold numbers are of particular interest.
5These calculations are from www.businessbookmall.com and may be viewed in the document Education Helps Some More Than Others. This document also contains a brief explanation of The Adult Literacy Survey.

About the Author of  Who Gets the Good Jobs and How Much They Pay