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IO W A STATETEACHERS C O L L E G E

SEP 1 1959

L I B iX r\i < Y

FACTORY WORKERS EARNINGS MAY 1958

Distribution of Production Workers in Manufacturing Industries by Straight-time Hourly Earnings

Bulletin No. 1252UNITED STATES DEPARTMENT OF LABORJames P. Mitchell, Secretary

BUREAU OF LABOR STATISTICS Ewan Claguo, Commissioner

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FACTORY WORKERS' EARNINGS MAY 1958

Bulletin No. 1252June 1959

UNITED STATES DEPARTMENT OF LABOR James P. Mitchell, Secretary

BU REA U OF LABO R STATISTICS Ewan Clague, Commissioner

For sale by the Superintendent of Documents, U S. Government Printing Office, Washington 25, D.C. - Price 40 cents


Preface

The U .S . D epartm ent o f L a b o r 's B u reau of L a b o r Stat ist ics p r o v id e s in this r e p o r t the b a s i c r e su lts o f a b ro a d su r v e y o f the s t ra ig h t - t im e h ou r ly earn ings (e x c lu s iv e o f p r e m iu m pay f o r o v e r t im e and w o r k on w e e k e n d s , h o l id a ys , and late sh ifts ) o f f a c t o r y w o r k e r s in the United States.

The g e n e ra l le v e l o f w ages in m anu factu r ing in d u str ie s is d e term in ed b y the in te ra c t io n o f a v a r ie ty of f o r c e s a f fect ing the m a rk e t f o r fa c t o r y la b o r . W hile it is use fu l f o r s o m e p u rp o s e s to p ic tu re the United States as c o n s t i tuting a s ingle m a rk e t f o r fa c t o r y la b o r , and h ence to think in te rm s of a g e n e ra l m a nu factu r ing wage le v e l , there a r e , in fa c t , n u m erou s su bm ark ets that can be d is t inguished in te r m s of g eograp h y , industry , and type o f la b o r . In the sh ort run, the f o r c e s a ffe c t in g w ages c o m e la r g e ly to fo cu s in these su b - m a rk e ts ; o v e r lo n ge r p e r io d s , such fa c to r s as m o b i l i ty (of both la bor and cap ita l) tend to bind the su bm ark ets togeth er . This r e p o r t exa m in e s in so m e detail the m anu factu r ing wage s t ru c tu re as of a s ing le point of t im e M ay 19 58. L e v e ls and d is tr ibu tions o f w ages a re set fo r th f o r the United States as a w h o le , f o r m a jo r r e g io n s , b y b ro a d in d u stry groups and fo r so m e in d u str ies m o r e n a r r o w ly defined , and b y m e t r o politan and n o n m etrop o l itan a r e a s .

The su r v e y was p art o f a b r o a d p r o g r a m of studies initiated by the D epartm ent o f L a b o r f o r continuing ap p ra isa l o f F e d e r a l m in im u m w age le g is la t io n . The W age and Hour and P u b lic C on tra c ts D iv is ion s p a rt ic ip a ted in the planning of the s u r v e y and p ro v id e d the n e c e s s a r y funds.

This r e p o r t was p r e p a r e d in the B u re a u 's D iv is io n o f W ages and Industr ia l R e la t io n s . The s ta t is t ica l and s a m pling techniques w e r e deve lop ed by Sam uel E. Cohen and T h e o d o re Golonka; the an a lyt ica l w o rk was under the d ir e c t io n o f N orm an J. Sa m u els , a s s i s te d b y H e r b e r t S ch a ffe r .

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Contents

Page

S u m m a r y --------- -~b----------------------------------------------------------------------------------------------------------- 1A ll m anufacturing -------------------------------------------------------------------------------------------------------- 1M etrop o li tan and n on m etrop o lita n a rea s ----------------------------------------------------------------D urab le and nondurable goods indu str ies --------------------------------------------------------------M a jo r industry groups ---------------------- -------------------------------------------------------------------------Se lected industries ---------- ------------------------------------------------------------------------------------------N o n s u p e rv is o ry w o r k e r s ------------- ------------------------------------------------------------------------------C o m p a r is o n o f m ean and m ed ian a v e ra g e s --------- ------------------------------------------------W age changes A p r i l 1954 to M ay 1958 ------------------------ ----------------------------------------

C h arts :

1. C um ulative p e rce n ta g e d istr ibut ions o f p rod u ct ion w o r k e r sin m anufacturing industr ies b y h o u r ly earn in g s ,United States and South, A p r i l 1954 and M ay 1958 --------------------------- 12

2. C um ulative p e rce n ta g e d istribut ions o f p rod u ct ion w o r k e r sin m e tro p o l ita n and n on m etrop o lita n a rea s b y h ou r lyearn in g s , M ay 1958 ------------------------------------------------------------- -------------------- 13

3. Cum ulative p e rce n ta g e d istr ibut ions o f p rod u ct ion w o r k e r sin durable good s and nondurable goods indu str ies byh ou r ly earn in g s , M ay 1958 --------------------------------------------------------------------- 13

4. P e r ce n ta g e of p rod u ct ion w o r k e r s in com ponent indu str ies ofse le c te d m anufacturing industry groups earning le s s than$ 1 .2 5 an h ou r , M ay 1958 ------------------------------------------------------------------------ 14

5. E arnings o f p rod u ct ion w o r k e r s in m anufacturing in d u str ies ,A p r i l 1954 and M ay 1958, m ed ia n h ou r ly earn ings andm idd le ranges within w hich o n e -h a l f o f the w o r k e r s f e l l ---------------- 15

6. P e r ce n ta g e o f p rod u ct ion w o rk e rs in m anufacturing industr iesearn ing le ss than s p e c i f ie d amounts p e r h ou r ,

United States and r e g io n s , A p r i l 1954 and May 1958 ----------------------- 167. P e r ce n ta g e d istr ibut ion o f p rod u ct ion w o r k e r s in

5 m anufacturing industry groups b y h ou r ly earn in g s ,United States and South, A p r i l 1954, A p r i l 1956,and M ay 1958 ------------------------- ------------------------------------------------------------------- 17

8. Trend of a v e ra g e h o u r ly earn ings in 7 m anufacturingindustry g rou p s , A p r i l 1 95 4 -M a y 1958 ---------------------------------------------- - 18

T a b les :

1. N um ber and a v era g e s tra ig h t -t im e h ou r ly earn ings o fp rod u ct ion w o r k e r s by se le c te d c h a r a c t e r is t i c s ,United States and r e g i o n s -------------------------------- --------------------- ---------------- 19

2. E st im ated d is tr ibut ion of p ro d u ct io n w o r k e r s b y a v e ra g es tra ig h t -t im e h ou rly ea rn in g s , United States and reg ion s ------------- 20

3. E st im ated p e rce n ta g e d is tr ibut ion o f p rod u ct ion w o r k e r s bya v e ra g e s t ra ig h t -t im e h o u r ly earn in g s , United Statesand reg ion s ------------------------------------------------------------------------------------------------- 21

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Contents Continued

P a g e

T a b le s : Continued

4. E st im ated p e rce n ta g e d is tr ibut ion o f p rod u ct ion w o r k e r s b ya v e ra g e s t ra ig h t -t im e h ou r ly earn ings f o r m e tro p o l ita nand n on m etrop o l ita n a re a , United States and re g io n s -------------------- 22

5. E st im ated d is tr ibut ion of p rod u ct ion w o r k e r s in durable andnondurable goods b y a v e ra g e s t ra ig h t -t im e h ou rly ea rn in g s ,United States and reg ion s --------------------------------------------------------------------- 23

6. E st im ated p e rce n ta g e d istr ibut ion o f p rod u ct ion w o r k e r s indurable and nondurable goods b y a v e ra g e s t ra ig h t -t im eh ou rly ea rn in g s , United States and reg ion s -------------------------------------- 24

7. E st im ated p e rce n ta g e d istr ibut ion of p rod u ct ion w o r k e r s inse le c te d industry groups b y a v e ra g e s tra ig h t -t im e h ou r lyearn in g s , United States and reg ion s --------------------------------------------------- 25

8. A v e r a g e s t ra ig h t -t im e h ou rly earn ings and p e rce n ta g e s ofp rod u ct ion w o r k e r s earning le s s than s p e c if ie d am ounts,s e le c te d in d u s tr ie s , United States ------------------------------------------------------ 33

9. A v e r a g e s tra ig h t -t im e h ou rly earn ings and p e rce n ta g e s ofp rod u ct ion w o r k e r s earning le s s than sp e c i f ie d am ounts,s e le c te d in d u s tr ie s , S o u t h --------------------------------------------------- ---------- ------ 35

10. N um ber and a v e ra g e s tra ig h t -t im e h ou rly earningsof p rod u ct ion w o r k e r s in m e tro p o l i ta n and n on m etrop o lita n a r e a s , s e le c te d in d u str ies ,

11. N um ber and a v era g e s tra ig h t -t im e h ou rly earn ingso f p rod u ct ion w o r k e r s in m e tro p o l ita n andn on m etrop o l ita n a re a s , s e le c te d in d u s tr ie s , South ------------------------ 38

12. E st im ated p e rce n ta g e d istr ibut ion o f n o n s u p e rv is o ryw o r k e r s in se le c te d industry groups by av era g e s tra ig h t -t im e h ou rly ea rn in g s , United States ands e le c te d reg ion s -------------------------------------------------------------------------------------- 39

13. E st im ated p e rce n ta g e d istr ibut ion of n o n s u p e rv is o ry w o r k e r sin se le c te d indu stry groups by a v e ra g e s tra ig h t -t im e h ou rly ea rn in g s , f o r m e tro p o l i ta n and n on m etrop o l ita n a re a s ,United States and se le c te d reg ion s ------------- --------------------------------------- 45

14. C o m p a r is o n of a r ith m e t ic m ean with m ed ia n h ou rlyearn ings of p rod u ct ion w o r k e r s , United Statesand reg ion s ---------------------------------------------------------------------------------------------- 57

A pp en d ixes :

Ao S cope and m ethod o f su rv e y ------------------------------------------------------------------- 59B. Q u estion n a ire ---------------------------------------------------------------------------------------------- 62

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Factory Workers Earnings, May 1958

Summary-

F a c t o r y p rod u ct ion w o r k e r s a veraged $ 1 .9 7 an hour at s tra ig h t -t im e rates in M ay 19 58. P ro d u c t io n w o r k e r em p loy m en t dropped to its low est le v e l of the 1957-58 r e c e s s i o n during that p a y ro l l p e r io d . The le v e l of earn ings p ro b a b ly was a ffected by the d if fe ren tia l im pact of the r e c e s s i o n on em p loy m en t . In g en era l , em p loy m en t was m o s t h eav ily a ffected in durable goods industr ies w here wage le v e ls , p ar t ly b e ca u se of the sk il l co m p o s it io n of the w o rk f o r c e , tend to be r e l a t ive ly high. F a c t o r ie s in the N ortheast re g io n em p loy ed 36 p e rce n t of the N ation 's 11 y4 m i l l io n w o r k e r s in m anufacturing in d u s tr ie s , 34 p e r c e n t w e re em p loy ed in the North C entra l re g io n , 21 p e rce n t in the South, and 9 p e rce n t in the W est .

A verage earn ings var ied am ong these reg ion s by as m u ch as 63 cents an hour. In the N ortheast, p rod u ct ion w o r k e r s a vera ged $ 1 .9 4 , in the South $ 1 .6 3 , in the North C entra l $2 . 13, and in the W est $ 2 .2 6.

About 70 p e rce n t o f the fa c t o r y p rod u ct ion w o r k e r s w e r e em p loy ed in the m e tro p o l ita n a rea s of the country . W o rk e rs a vera ged $2. 08 an hour in these a rea s co m p a re d with $1. 70 in n on m etrop o lita n a re a s .

P r o d u c e r s of durable goods em p loy ed about 56 p e rce n t of the w o rk e rs w h ose $ 2 .1 1 av era g e e x ceed ed by 32 cents the a v era g e earnings in nondurable goods p lants. The d i f fe re n ce in earn ings le v e ls as b etw een durable and nondurable goods industr ies ranged f r o m 18 cents in the South to 30 cents in the N ortheast .

An estim ated 5 .9 p e rce n t of the N ation 's fa c t o r y w o r k e r s earned le s s than $ 1 .0 5 an hour; 1 0 .8 p e rce n t , le s s than $ 1 .1 5 ; and 15. 6 percent , le s s than $ 1 .2 5 . Of the n e a r ly 1 */4 m i l l io n w o r k e r s earn ing le s s than $ 1 .1 5 an hour, half w e re e m p loyed in the South, 7 of e v e r y 10 w e re in estab lish m en ts produ cing nondurable goods , and 7 of e v e r y 12 w e re in n on m etrop o litan a r e a s . On the other hand, 2% m i l l io n w o r k e r s earned $2 . 50 o r m o r e an hour. M o re than an eighth of these r e la t iv e ly h ig h -w a ge w o r k e r s w e re employe,d in the South. About tw o -th ird s of the w o r k e r s earn ing $2 . 50 o r m o r e w ere engaged in p rod u cin g durable goods and 85 p e r c e n t w e re in m e tro p o l ita n a re a s .

N ear ly 70 p e rce n t of the p rod u ct ion w o r k e r s earn ing le ss than $ 1 .1 5 an hour w e r e em p loy ed in estab lish m en ts m anufacturing food , text ile , a pp are l , and lu m b er p ro d u cts . At the upper end of the wage s c a le , m o r e than tw o-f i fth s of the w o r k e r s earn ing $2 . 50 or m o r e an hour w e re em p loy ed in the p r im a r y m e ta ls , m a ch in e r y (excep t e l e c t r i c a l ) , and tran sportat ion equipm ent in d u str ies .

A ll M anufacturing

F a c t o r y w o r k e r s , nu m berin g s lightly le s s than l l 1/* m i l l io n in M ay 1958, a vera ged $ 1 .9 7 an hour at s t ra ig h t -t im e rates (table 1). This a v e ra g e has c o n s id e ra b le s ig n i f ica n ce f o r m an y p u rp o se s and s u m m a r iz e s in a s ingle f ig u re the g en era l le v e l o f w ages f o r f a c t o r y w o r k e r s . It p ro v id e s a r e fe r e n c e to the cen tra l point about w hich the earn ings of f a c t o r y w o r k e r s w e r e d istr ibuted . The d is t r ib u tion of earn ings v a r ied w id e ly , although 94 p e r c e n t o f the w o r k e r s earned betw een $1 and $3 an hour and the m idd le half betw een $ 1 .4 5 and $ 2 .4 0 . An es t im ated 663, 000 w o r k e r s engaged in m anufacturing in the United States, o r 5 .9 p e rce n t , earned le s s than $ 1 .0 5 an hour; 1 ,2 1 5 ,0 0 0 , o r 10. 8 p e r c e n t , le s s than $ 1 .1 5 ; and 1 ,7 5 6 ,0 0 0 , o r 15 .6 p e rce n t , le s s than $ 1 .2 5. A p p ro x im a te ly half of the Nat ion 's p rod u ct ion w o r k e r s earned $2 or m o r e an hour and a fifth earned $ 2 .5 0


2o r m o r e . The only m a jo r con cen tra t ion of w o r k e r s d is ce r n ib le at any one 5 -c e n t w age in terva l was the 6 28 ,000 w o r k e r s earn ing f r o m $1 to $ 1 . 0 5 . 1 O th erw ise , the earn ings w e re d istributed in g e n e ra l ly equal p ro p o rt io n s about the a vera ge (tables 2 and 3).

F o r the p u rp o se s of this study, the 48 States and the D is t r ic t of C o lum bia w e r e divided into 4 b roa d g e o g ra p h ica l r e g i o n s . 2 T h ir t y -s ix p e rce n t o r 3 ,9 9 4 ,0 0 0 of the Nation*s fa c t o r y p rod u ct ion w o rk e rs w e re em p loy ed in the N ortheast , 34 p e r cent o r 3, 772 ,000 in the North C en tra l , 21 p e rce n t o r 2 ,4 2 2 ,0 0 0 in the South, and 9 p e rce n t or 1 ,05 6 , 000 in the W est .

Fundam ental d i f fe r e n ce s in h ou rly earnings p rev a iled am ong these r e g ion s . A v e ra g e s , f o r exa m p le , ranged f r o m $ 1 .6 3 in the South to $ 2 .2 6 in the W est . In the N ortheast , m anufacturing p rod u ct ion w o r k e r s av era g ed $ 1 .9 4 an hour and in the North C entra l States, $ 2 .1 3 (tables 2 and 3).

C on s id er in g that the earnings f o r a ll but 6 p e r c e n t of the w o r k e r s fe l l within a $2 range , the d i f fe r e n ce of 63 cents an hour in the a v e ra g e s betw een the South and the W est , o r even the d i f fe re n ce of 31 cents betw een the South and N ortheast r e g io n s , r e f le c t s s ign if icant variat ions in the d is tr ib u t ion s . A p p r o x i m a te ly one o f e v e r y s ix p rod u ct ion w o rk e rs in the South earned le s s than $ 1 .0 5 an h ou r . T hese 4 1 4 ,0 0 0 w o r k e r s re p re se n te d n e a r ly tw o -th ird s of all the fa c to ry w o r k e r s in the Nation at this le v e l of w a g es . About three of e v e r y eight f a c to r y w o r k e r s in the South earned le s s than $1.2 5, while one o f e v e r y eight earned $2 . 50 o r m o r e an h ou r . In each of the other r e g io n s , f e w e r than 14 p e rce n t o f the w o r k e r s earned le s s than $ 1 .2 5 , w h ereas the p ro p o r t io n earn ing $ 2 0 50 or m o r e an hour ranged f r o m 18 p e rce n t in the N ortheast to about 31 p e r c e n t in the W est . (See chart 1 f o r cum ulative d istr ibut ion of earn ings fo r United States and South in 1954 and 19 58. )

M etrop o litan and N onm etropolitan A re a s

Population con cen tra t ion appears to be one o f the fa c to r s that in fluences w a g e s . At the tim e of the su rv e y , 7 of e v e r y 10 fa c t o r y w o r k e r s in the country w e r e em p loy ed in m e tro p o l ita n a r e a s , w h ere a v e ra g e earn ings of $ 2 .0 8 w ere 38 cents h igher than in n on m etrop o litan a r e a s . 3 Earnings f o r the m idd le half of the w o r k e r s in m e tro p o l ita n a rea s ranged fr o m $ 1 .6 0 to $ 2 .5 0 co m p a re d with $ 1 .2 0 to $ 2 .1 0 fo r the equivalent group in n on m etrop o litan a rea s (table 4).

The d if fe r e n ce s in the d istributions of earnings betw een m e tro p o l ita n and n on m etrop o lita n a rea s w e re la r g e ly found in the lo w e r and upper wage intervals* (See chart 2 . ) W hereas about 10 p e rce n t o f the w o r k e r s in the la rg e c ity a reas earned le s s than $ 1 .2 5 an h ou r, n e a r ly 28 p e rce n t in the le ss u rban ized areas w e r e paid these lo w e r wages* In the m idd le wage in terva ls ( $ 1 .5 0 to $2 , fo r ex a m p le ) , a p p ro x im a te ly the sam e p ro p o r t io n o f w o rk e rs was found in each o f the two areas* At the upper end o f the d istr ibut ion , n e a r ly 2 5 p e r c e n t of the m e t r o politan w o r k e r s and 10 p e rce n t o f the n on m etropo litan w o r k e r s earned $ 2 .5 0 or m o r e . Although the p ro p o r t io n s o f w o r k e r s con cen tra ted about the $1 m in im u m wage w e re m a rk e d ly d if fe ren t , n e a r ly tw o-f i fth s (about 250, 000) o f a ll the w o r k e r s earning $1 to $1 . 05 an hour w e re em p loy ed in the m e tro p o l ita n a re a s .

1 F o r ease of read ing , in this and subsequent d is c u s s io n of tabulations, the l im its of the c la ss in terva ls a re designated as $1 to $ 1 .0 5 , 3 to 5 p e rce n t , e tc . , instead o f using the m o r e p r e c i s e te rm in o lo g y " $ 1 and under $ 1 .0 5 , 3 and under 5 p e rce n t , " e tc .

2 F o r listing of States in each reg ion , see footnote 2, table 1.3 See footnote 3, table 1, f o r defin ition of m e tro p o l ita n and n o n m e tr o

politan a r e a s .


3The South was the only re g io n w h ere em p loy m en t was g r e a te r in n on - m etrop o l ita n than in m e tro p o l ita n a r e a s . A verage earnings fo r w o r k e r s in m e t r o politan a rea s ranged f r o m $ 1 .8 7 in the South to $ 2 .2 8 in the W est , and in n on - m etrop o l ita n a r e a s , f r o m $ 1 .4 3 to $ 2 . 2 1 in the sam e two r e g io n s , r e s p e c t iv e ly . A v e ra g e s in m e tro p o l ita n a rea s e x ceed ed those in n on m etrop o litan by 44 cents in the South, 36 cents in the North C en tra l, 20 cents in the N orth east , and 7 cents in the W est . A lm ost f o u r - f i f th s of a ll the w o r k e r s in n on m etrop o lita n a rea s who earned $1 to $ 1 .0 5 w e r e in the South, but in the m e tro p o l ita n a rea s of the N orth east, m o r e w o r k e r s w e r e found at this wage interva l than in the m etrop o l ita n a rea s of the South.

D urable and Nondurable G oods Industr ies

W age d istr ibut ions and lev e ls a re s ig n if ican tly in fluenced by the industr ia l d is tr ibut ion of the Nation*s fa c t o r y w ork f o r c e . In the United States , m o r e than 6 j/4 m i l l io n w o r k e r s (56 p e rce n t ) w e re engaged in p rod u cin g durable g ood s . These w o r k e r s g e n e ra l ly earned m o r e than those em p loy ed in nondurable goods in d u s t r ie s . 4 An a v e ra g e of $2. 11 was r e g is te r e d in May 19 58 f o r durable goods w o r k e r s and $ 1 .7 9 an hour f o r nondurable goods w o r k e r s . The m idd le half of the w o r k e r s in the f o r m e r group had earn ings ranging f r o m $ 1 .7 0 to $ 2 .5 0 , c o m p a re d with $ 1 .2 5 to $ 2 .2 0 f o r the m id d le half in the latter grou p . (See chart 3 . ) S even -tenths of a ll the w o r k e r s earn ing le s s than $ 1 .2 5 w e r e em p loy ed in plants m anufacturing nondurable goods (tables 5 and 6 ).

Only in the South did em p loy m en t in nondurable goods indu str ies ex ceed that in durable g o o d s . Plants m anufacturing durable goods accounted f o r a p p ro x i m a te ly tw o -th ird s of the w o r k e r s in the W est and North C entra l r e g io n s , s ligh tly m o r e than half in the N ortheast , but only about tw o-f i fth s in the South.

The h ighest a v e ra g e r e g is te r e d fo r durable goods was $ 2 .3 3 in tbe W est , and the lo w e st a v e ra g e was $ 1 .7 4 in the South. The sam e two reg ion s r e cord ed the h ighest and lo w e st earn ings fo r nondurable g ood s , $ 2 .1 3 and $ 1 .5 6 , r e s p e c t iv e ly . E arnings fo r durable goods industr ies ex ce e d e d those fo r non durable goods b y 30 cents in the N ortheast, 2 5 cents in the North C en tra l, 20 cents in the W est , and 18 cents in the South.

M a jo r Industry Groups

D if fe re n c e s in wage le v e ls am ong industr ies can be exp la ined , at leas t in part , by d if fe r e n ce s am ong industr ies in the sk il l co m p o s it io n of the w ork f o r c e . The le v e l o f w ages in an industry that re q u ir e s a high p ro p o r t io n of sk il led w o r k e r s re la t iv e to unsk illed w ill tend to be above that of an industry with the opposite sk i l l r e q u ire m e n ts , even though w ages in the two industr ies are equal fo r s im i la r types of w ork . This latter condit ion , of c o u r s e , does not always obtain. The wide range of in ter ind u stry v a r ia b il i ty in w ages can be re a d ily seen in table 1, w h ere data f o r 21 b roa d industry groups a re tabulated. 5 A v e ra g e h ou r ly earnings ranged f r o m $ 1 .4 2 in textile m i l l s to $ 2 .5 8 in plants p rod u cin g p e tro leu m and coa l p ro d u cts , a d i f fe r e n ce of $ 1 .1 6 an hour. Even am ong the g e n e ra l ly lo w -w a g e in d u s tr ies , such as food , te x t i le s , a pp are l , lu m b e r , and leath er , a spread o f 36 cents an hour ex is ted betw een the low est and highest industry a v e ra g e s .

4 See footnote 4, table 1, f o r l isting of durable and nondurable goods m an u factu ring in d u str ies .

5 See footnote 3, table 1, f o r defin ition of industry and industry g rou ps .


4B eca u se of the v a r ia b il i ty in earn ings by industry , the o v e r a l l wage s tru c tu re in m anufacturing was a ffected by the p ro p o r t io n of em p loy m en t in each industry . In M ay 19 58, em p loy m en t in the fo llow in g s ix industry groups a c counted f o r m o r e than half o f the f a c t o r y w o r k e r s : T ran sp orta t ion equipm ent,n o n e le c t r i c a l m a ch in e r y , a p p are l , f o o d , p r im a r y m e ta ls , and te x t i le s . The fa b r ica ted m eta l indu str ies and e l e c t r i c a l m a ch in e r y m a n u fa c t u r e r s , each with m o r e than 700 ,000 w o r k e r s , together accounted f o r 13 p e r c e n t of the em p loy ed p r o duction w o r k e r s . L u m b er and w ood p ro d u cts , printing and pub lish ing , and the ch e m ica l industr ies together em p loy ed m o r e than \ m i l l io n p rod u ct ion w o r k e r s .

The d is tr ibut ion of this industr ia l em p loy m en t within the reg ion s had an im portan t b e a r in g on reg ion a l wage l e v e ls . The m a jo r e m p lo y e r s in the N orth east w e r e a pp are l m a n u fa c tu re r s , fo l lo w e d by p ro d u c e r s of e l e c t r i c a l and n on e l e c t r i c a l m a ch in e r y , p r im a r y m e ta ls , and tex t i le s . M o r e than a fifth o f the p rod u ct ion w o r k e r s in the South w e r e em p loy ed in textile m i l l s ; the a pp are l , lu m b e r , and food industr ies each em p loy ed about a tenth of the w o r k e r s . In the North C entra l re g io n , about half the em p loy m en t was con cen tra ted in the n o n e le c t r ic a l m a ch in e ry , t ran sportat ion equipm ent, food , and p r im a r y m e ta l in d u str ies . L u m b e r , tran sportat ion equipm ent, and food w ere the m a jo r em p loy in g industr ies in the W est (table 1).

The e f fe c ts of the d is tr ibut ion of industr ia l em p loy m en t on reg ion a l wage le v e ls can be i l lustrated by the a v e ra g e earn ings in the m a jo r industry . The n u m e r ica l ly m o s t im portant industry in each re g io n em p loy ed f r o m 14 to 20 p e r cent o f the p rod u ct ion w o r k e r s . A verage earn ings in these indu str ies at the tim e o f the s u rv e y w e r e $ 1 .6 3 in the N ortheast , $ 1 .3 2 in the South, $ 2 .2 9 in the North C en tra l, and $ 2 .4 4 in the W est .

E m phasis has b een p la ced on the e f fe c ts o f industry w ages on reg ion a l w age le v e ls . It should be noted , h o w e v e r , that the c o n v e r s e is a ls o im portant. In a lm o s t a ll ca s e s w h ere co m p a r is o n s w e r e p o s s ib le , the a v e ra g e earn ings fo r the sam e industry group w e re low est in the South, h ighest in the W est , and gen e ra l ly fo l low ed the sam e pattern noted in the o v e r a l l re g io n a l wage le v e ls . The reg ion a l in fluence can perhaps be i l lustrated if we a ssu m e that the South had the sam e industr ia l c o m p o s it io n as the N ortheast . Using the la t te r 's em p loy m en t in each industry and the a v e ra g e h ou r ly earn ings fo r the South in these in d u str ies , the South would have had an a v e ra g e fo r a ll m anufacturing w o r k e r s o f $ 1 .6 8 anhour----5 cents m o r e than its actual a v era g e but still 2 6 cents be low the a veragein the N ortheast . Th ere w e re s e v e r a l im portant excep t ion s to the reg u la r pattern o f wage le v e ls in w hich the low est earn ings w ere found in the South, notably in the p aper and a llied p ro d u cts , ch e m ic a ls , and. p r im a r y m eta l in d u str ies . The a v e ra g e earn ings in the South e x ceed ed those in the N ortheast in these industry groups by 4, 12, and 2 cents an hour, r e s p e c t iv e ly .

As the industry a v e ra g e s ranged f r o m $ 1 .4 2 to $ 2 .5 8 an hour, so the d istr ibut ion of earn ings about these a v e ra g e s a ls o varied w ide ly . L a rg e c o n centrat ions of w o rk e rs w e re found near the a v era g e in som e in d u s t r ie s 0 F o r ex a m p le , n e a r ly on e - f i f th o f the w o rk e rs in the tran sportat ion equipm ent indust r ie s , w h ere the a v e ra g e was $ 2 .3 8 , earned betw een $ 2 .3 0 and $ 2 .4 0 an hour. On the other hand, a fourth of the w o rk e rs in lu m ber earned $1 to $ 1 .0 5 an hour (ap p rox im ate ly 60 cents be low the a v e ra g e ) w hile a fourth o f the w o r k e r s in the printing and publishing indu str ies earned $3 o r m o r e an hour (at least 69 cents above the a v e ra g e ) . G en era l ly , those industry groups with a v e ra g e s under $ 1 .8 0 an hour had s ign if ican t p ro p o r t io n s of w o r k e r s c lu s tered around the F e d e ra l m in im u m wage o f $1 , while none o f those indu str ies with a v e ra g e s above $ 1 .8 0 an hour had as m an y as 5 p e rce n t of the w o rk e rs earn ing le s s than $ 1 .0 5 (table 7).


5S elected Industries

The d iv e r s i f ie d wage patterns found am ong the b road industry groups w e re accentuated when the pay le v e ls and d istribut ions o f the com ponent industr ie s w ere exam ined . The b roa d industry data often co n c e a l sharp d if fe re n ce s am ong the wage d istr ibut ions of the subindustr ies of a m a jo r group . Such d if f e r e n c e s o c c u r in both the lo w -w a g e and h ig h -w a ge indu str ies as a few exam ples f r o m the su rv e y data w ill i l lustrate (table 8).

The food and kindred p rod u cts group included the l e v e r a g e industr ies (with a v era g e earnings o f $2. 12 and fe w e r than a tenth o f the w o r k e r s paid le ss than $ 1 .0 5 ) and canning and p r e s e r v in g (with a v e ra g e earnings o f $ 1 .4 9 and n e a r ly on e - fo u rth o f the w o r k e r s paid le s s than $ 1 .0 5 ) . The app are l group in cluded m e n 's and b o y s 1 suits and coats (with a v e ra g e earn ings of $ 1 .7 6 and le ss than a tenth o f the w o rk e rs paid le s s than $ l o 05) and m e n 's and b o y s ' furn ish ings and w o rk clothing (with a v era g e earn ings of $ 1 .2 7 and th ree -ten th s paid le s s than $ 1 .0 5 ) . The c h e m ica l group included industr ia l o rg an ic ch e m ica ls (with a vera ge earnings of $ 2 .4 2 and v irtu a lly no w o r k e r s paid le ss than $ 1 .0 5 ) and vegetab le and anim al o ils and fats (with a v era g e earn ings o f $ 1 .5 9 and about o n e -s ix th of the w o r k e r s paid le ss than $ 1 .0 5 ) . (See chart 4 fo r p e rce n ta g e s o f p rod u ct ion w o r k e r s earning le s s than $ 1 .2 5 an hour. )

Not a ll industry groups contained industr ies o f w ide ly d is s im i la r wage c h a r a c t e r is t i c s . F o r ex a m p le , the com ponent industr ies within the fab r ica tedm eta l p ro d u cts , m a ch in e r y , and tran sportat ion equipm ent industry groups did not v a ry substantia lly in e ither le v e l or d istr ibut ion o f earn in gs .

A nother d i f fe re n ce o c c u r s in the textile group . The two m a jo r indu str ie s in the group a re b roa d w ov en fa b r ic m i l ls and knitting m i l l s . W o rk e rs in the knitting m i l ls a veraged $ 1 .3 9 an hour, 1 cent m o r e than those in the b r o a d - w oven m i l l s , although n e a r ly 18 p e rce n t of the knitting m i l l w o r k e r s w e re paid le ss than $1 .05 co m p a re d with le s s than 3 p e rce n t of the b roa d w ov en m i l l w o r k e r s .

A c l o s e r study of the wage s tru ctu res o f som e of the subindustries su g gests that caution needs to be e x e r c i s e d in attributing wage d i f fe re n ce s to any s ingle fa c t o r . The fa c to r of geog ra p h ic lo ca t ion m a y be used fo r i l lustration purposeso F o r ex a m p le , a ll but 6 p e rce n t o f the w o rk e rs paid le ss than $ l o05 an hour in the m eat prod u cts industry w e r e em p loy ed in the South0 L e ss than half of the w o rk e rs engaged in m aking m e n 's and b o y s ' furn ish ings and w ork clothing w e r e em ploy ed in the South but m o r e than seven -tenths o f a il the w o r k e r s earning le s s than $ 1 .0 5 in that industry w e re in the southern p lants. Even m o r e em phatic a re the d i f fe r e n ce s betw een the earn ings o f w o r k e r s in southern saw m ills and planing m i l l s and in the re m a in d e r o f the country . A v e r a g e h ou rly earnings in the South w e r e $ 1 .0 8 c o m p a re d with $ 2 .0 1 in the r e s t o f the United States and all but about 3 p e rce n t of the w o r k e r s paid le s s than $ 1 . 0 5 w e r e in the southern m i l ls (table 9).

In each o f these ca s e s cited there w e r e unique condit ions p re v a il in g in the southern industr ies that tended to d e p re ss w ages re la t iv e to other r e g io n s . F o r exa m p le , a substantia l n u m ber o f the lo w e r wage Southern w o r k e r s in the m ea t prod u cts industry w e re em p loy ed in the expanding p ou ltry p rod u cts plants; the southern m e n 's and b o y s ' furn ish ings industry is la r g e ly co m p o s e d o f plants m aking lo w e r p r ic e d sp or t sh ir ts ; and the southern lu m ber industry is dom inated b y sm all p ortab le saw m il ls engaged in cutting s e co n d - and th ird -g ra d e t im ber in w hich the a v era g e yie ld p er log is about on e-tenth that o f the Douglas f ir r e g io n 0


6F u rth er light on w age variat ions am ong indu str ies can be obtained i f the data f o r m e tro p o l ita n a reas a re separated f r o m those fo r n on m etropo litan a re a s . A m a jo r i t y o f the w o r k e r s in a il but 2 of the 21 broad industry groups (textiles and lu m b e r ) w e r e em p loy ed in the m e tro p o l ita n a r e a s . Only in the p ap er ind u str ie s w e r e a v e ra g e earn ings h igh er in the n on m etrop o litan a re a s ; in all other indu stry g rou ps , a v era g e earn ings ranged f r o m 2 to 33 p e r c e n t h igher in the m e tro p o l ita n a rea s (table 1 0 )o

E arnings w e re a ls o h igher in the m etrop o l ita n a rea s f o r v ir tu a lly a ll o f the subindustr ies fo r w hich data w e r e ava ilab le . As has a lr e a d y been noted, the w age c h a r a c t e r is t i c s o f the industr ies a ss o c ia te d with the m an ufactu re o f a b road p rod u ct group are not n e c e s s a r i l y s im i la r and the d if fe r e n ce s in earn ings leve ls fo r w o r k e r s of the sam e industry em p loy ed in m e tro p o l ita n a rea s and n o n m e tro politan a re a s va r ied w ide ly . F o r ex a m p le , am ong industr ies engaged in the m anufactu re of food p ro d u cts , a v e ra g e earnings in the m e tro p o l ita n a rea s w e re h igher b y 5 cents an hour in c o n fe c t io n e ry produ cts but b y 78 cents in the b e v e ra g e in d u s tr ie s . In the textile group , h igher a v era g e h ou rly earn ings in m etrop o l ita n a rea s w e re 7 cents in b roa d w ov en m i l l s and 16 cents in dyeing and fin ish ing plants. A m on g the appare l in d u s tr ies , these d i f fe re n ce s in a v e ra g e earnings w ere 18 cents in m is c e l la n e o u s fa b r ica ted textile p rod u cts and 38 cents in w o m e n 's and m i s s e s ' ou te rw e a r . In the c h e m ica l group , a v era g e earnings w e re 36 cents h igh er in the m e tro p o l ita n a re a s fo r w o r k e r s p rod u cin g vegetab le and an im al o i ls and fats , but w o r k e r s engaged in p rod u cin g industr ia l in org a n ic ch e m ica ls av era g ed 4 cents an hour le s s in m e tro p o l ita n a rea s (table 1 0 ).

The d i f fe r e n ce s b etw een the earn ings of w o r k e r s in m e tro p o l ita n and n on m e tro p o l ita n a re a s re su lt f r o m a w ide v a r ie ty of f a c t o r s , one of w hich is ce r ta in ly the e f fe c t o f the d is tr ibut ion o f em p loy m en t in the southern reg ion . In half o f the 16 b roa d industry groups f o r w hich data w ere ava ilab le in the South, em ploy m en t in the n on m etrop o lita n a rea s e x ce e d e d that in the m e tro p o l ita n a rea s and, in som e o f these in d u s tr ie s , m o r e than tw ice the num ber of w o r k e r s w e r e em p loy ed in the n on m etrop o lita n a r e a s . A v e r a g e earn ings in the South w e r e h igher in the m e t r o politan a re a s in a ll but two of the board industr ies f o r w hich data w e r e a v a ilab le . The d i f fe r e n ce s in a v e ra g e earn ings betw een the two a r e a s , i n m o s t c a s e s , w e re not as la rg e in the subindustr ies as in the m a jo r groups (table 1 1 ).

N o n s u p e rv is o ry W o rk e rs

The p re ce d in g d is cu s s io n , w hich has r e fe r e n c e to the data in the f i r s t 11 ta b les , was l im ited to p rod u ct ion and re la ted w o r k e r s . In r e co g n it io n o f the grow ing im p o r ta n ce of "white c o l l a r " w o r k e r s in the m anufacturing lab or f o r c e , data w e r e a ls o c o l le c te d fo r other n o n su p e rv is o ry w o r k e r s , such as o f f i c e and c l e r i c a l e m p lo y e e s . 6 The d istr ibut ion o f earn ings f o r a ll n o n su p e rv is o ry w o rk e rs is tabulated in table 12 fo r 16 o f the 21 m a jo r industry grou p s . 7 Such data have not p re v io u s ly been ava ilab le in this f o r m . In 7 o f the 16 industr ies f o r which data w e r e a va ila b le , the "white c o l l a r " w o r k e r s re p re se n te d f r o m 20 to 2 7 p e rce n t o f the n o n s u p e rv is o ry w o rk f o r c e . Although the p ro p o r t io n s of these w o r k e r s w e r e s ign if ican t in m o s t c a s e s , the d istributions fo r a ll n o n s u p e rv is o ry w o rk e rs w e r e not ra d ica l ly d if feren t f r o m those fo r p rod u ct ion w o r k e r s .

6 See appendix A f o r defin ition o f n o n su p e rv is o ry e m p lo y e e s .7 B e ca u se of the in co rp o ra t io n of r e ce n t su rvey s w hich included only p r o

duction w o r k e r s , data fo r a ll n o n su p e rv is o ry w o r k e r s w e r e not ava ilab le fo r all in d u str ies .


7A v e r a g e earn ings w e re g e n e ra l ly h igher f o r a ll n o n s u p e rv is o ry w o r k e r s than f o r p rod u ct ion w o r k e r s only; in 10 in d u s tr ie s , a v e ra g e h ou r ly earn ings w e re h igher b y 1 to 4 cents ; in 3 in d u s tr ies , a v era g e earn ings w e r e iden tica l ; and in the rem ain in g 3 in d u s tr ie s , the a v e ra g e s w e r e lo w e r f o r a ll n o n s u p e rv is o ry w o r k e rs than f o r p rod u ct ion w o r k e r s ---- 1 cent lo w e r in o rd n an ce , 7 cents lo w e r inprinting and pub lish ing , and 4 cents lo w e r in p e tro le u m and coa l p ro d u cts .

A v e r a g e h o u r ly earn ings f o r a ll n o n s u p e rv is o ry w o r k e r s w e r e m o r e n e a r ly the sam e as those f o r p rod u ct ion w o r k e r s in the N ortheast than in the other reg ion s and g r e a te r d i f fe r e n ce s w e r e found in the W est in those industr ies fo r w hich data w e r e a va i la b le . In the South, a v e ra g e s fo r a ll n o n s u p e rv is o ry w o r k e r s w e r e 7 cents an hour h igher in the food in d u s tr ie s , 5 cents h igher in m isc e l la n e o u s m anufacturing in d u s tr ie s , and 8 cents lo w e r in the printing and publish ing in d u s tr ie s . The d i f fe r e n ce s in the other indu str ies did not e x ceed 2 cents an hour.

A v e r a g e earnings f o r a ll n o n s u p e rv is o ry w o r k e r s w e r e m o r e n e a r ly the sam e as those f o r p rod u ct ion w o r k e r s in n on m etrop o lita n a rea s than in m e t r o politan a rea s in m o s t indu str ies f o r w hich co m p a r iso n s could be m a d e . Notable except ion s w e r e printing and publishing and p e tro le u m and coa l p ro d u cts . In the f o r m e r industry , the a v e ra g e f o r a ll n o n s u p e rv is o ry w o r k e r s was 9 cents be low the a v era g e f o r p rod u ct ion w o r k e r s in n on m etrop o lita n a rea s co m p a re d with 6 cents be low in m e tro p o l i ta n a re a s ; in the latter industry , the d if fe r e n ce s w e r e 10 cents l e s s in n on m etrop o lita n and 3 cents le s s in m e tro p o l ita n a re a s (table 13).

C o m p a r is o n of M ean and M edian A v e r a g e s

The gen era l le v e l o f w ages has been d e s c r ib e d in this r e p o r t b y the a v e ra g e as a m ean f ig u re o f a ll the individual h ou r ly ea rn in g s . The m ean , w hich is a ffected by the e x tr e m e ea rn in g s , m a y be som ew hat m is le a d in g in those ca se s w h ere the d is tr ibut ions w e r e not s y m m e t r ic a l . A nother m e a s u r e o f a v e ra g e e a rn ings is the m ed ian , the am ount b e low and above w hich the earn ings fo r 50 p e r c e n t o f the w o r k e r s a re found. The d i f fe re n ce betw een the two a v e ra g e s is a r e l ia b le m e a su r e o f the extent to w h ich the d istr ibut ions depart f r o m s y m m e tr y . B eca u se a f l o o r has been estab lish ed f o r m o s t m anufacturing w ages (by the $1 m in im u m w age) , but no upper l im itat ion has been im p o se d , the m ean is g e n e ra l ly h igher than the m ed ia n . The two a v e ra g e s have been co m p a re d in table 14 f o r the United States, the fo u r reg ion s and the m a jo r industry g rou ps .

The s im i la r i ty betw een the m ean and m ed ian earn ings ( $ 1 .9 7 and $ 1 .9 6 , r e s p e c t iv e ly ) f o r a ll f a c t o r y p rod u ct ion w o r k e r s in the United States re f le c te d the g e n e ra l ly even d is tr ibut ion o f earn ings betw een the $1 and $3 an hour l im its . (See chart 5. ) This s im i la r i ty a ls o ex is ted in the North C entra l and the W est . In the N ortheast and the South p a r t ic u la r ly in the la tter the m ed ian was s ig n i f i cantly be low the m ea n . The 2 0 - c e n t -a n -h o u r d i f fe r e n ce in the South highlights the e f fe c t that the con cen tra t ion o f w o r k e r s at the lo w e r end o f the wage s ca le has on the d is tr ibut ion o f ea rn in g s . The in fluence o f such con cen tra t ion s is a ls o evident in the industry d is tr ib u t ion s . A d ir e c t c o r r e la t io n (with few e x ce p t io n s ) ex is ted betw een the p e rce n ta g e o f w o r k e r s earn ing le s s than $ 1 .0 5 an hour and the amount b y w hich the m ea n e x ce e d e d the m ed ian .

W age Changes A p r i l 1954 to M ay 1958

The B u r e a u ^ last co m p re h e n s iv e study o f fa c t o r y earn ings in A p r i l 19 54 p ro v id e s a b a s is f o r c o m p a r iso n s o f wage le v e ls and d istr ibut ions betw een A p r i l 1954 and M ay 1958. The n u m ber o f p rod u ct ion w o r k e r s est im ated in the M ay 1958

F a c t o r y W ork ers* E arn in gs , A p r i l 1954, BLS Bull . 1179, M a rch 1955.


8m anufacturing su rv e y was about i y 3 m i l l io n fe w e r than the lZ l/z m i l l io n in A p r i l 1954, and the d i f fe r e n ce in em p loy m en t betw een the two studies in f lu en ces , to s o m e extent, the ex ist ing wage l e v e ls . D urab le goods industr ies a ccou n ted f o r m o r e than th re e - fo u r th s o f the l o s s in w o r k e r s . On a re g io n a l b a s is , e m p lo y m ent d e c r e a s e s var ied f r o m 14 p e r c e n t in the North C en tra l re g io n , in w hich durable goods industr ies w e r e la r g e ly found, to 6 p e r c e n t in the South.

A v e r a g e s t ra ig h t -t im e h ou rly earn ings f o r p rod u ct ion w o r k e r s in the Nat io n ^ m anufacturing indu str ies r o s e 17 p e rce n t , f r o m $ 1 .6 8 in A p r i l 1954 to $ 1 .9 7 in M ay 1958. This in c r e a s e was a cco m p a n ie d b y m a rk ed changes in the d is tr ibut ion o f w ages as s u m m a r iz e d b e low :

A v e r a g e s tra ig h t -t im e h ou r ly earn ings

P e rce n ta g e d istr ibut ion o f p rod u ct ion w o r k e r s

A p r i l 1954 M ay 1958Under $ 1 ------------------------------------------- 10 .2 0 .3$1 to $ 1 . 2 5 ------------- -------------------------- 12 .2 15. 4$ 1 .2 5 to $1 . 50 -------------------------------- 14. 6 1 1 .4$1. 50 to $2 --------------------------------------- 38. 1 24. 8$2 to $2 . 50 --------------------------------------- 18. 7 28. 1O ver $2 . 50 --------------------------------------- 6 .2 1 9 .9N um ber of w o r k e r s ------------------------- 12,590,000 11,245,000A v e r a g e h ou r ly e a r n i n g s ---------------- $ 1 .6 8 $ 1 .9 7

The advance in earn ings during the 4 -y e a r p e r io d was apparently shared b y w o r k e r s at p r a c t i c a l ly a ll le v e ls o f pay. In 1954, a p p ro x im a te ly l 1/ ^ m i l l io n w o r k e r s , o r 10 .2 p e rce n t , earned le s s than $1 an hour co m p a re d with only 3 5 ,0 00 w o r k e r s , o r 0 .3 p e rce n t , in 1958. The statutory F e d e r a l m in im u m w a g e , e f f e c tive M a rc h 1, 1956, p reven ted the paym ent o f w ages be low $1 to m o s t m an u factu r in g e m p lo y e e s . M o r e o v e r , tw ice the num ber o f w o r k e r s earned $1 an hour, the new m in im u m w age , in 1958 as w e re paid the 7 5 - cent m in im u m in 1954. L ittle change o c c u r r e d in the d is tr ibut ion o f earn ings betw een $ 1 .0 5 and $ 1 .5 0 , but the p ro p o r t io n o f w o r k e r s r e c e iv in g $ 1 .5 0 to $ 2 an hour d e c r e a s e d f r o m about th re e -e ig h th s in 1954 to a fourth in 1958, and the p ro p o r t io n o f w o r k e r s earn ing $2 o r m o r e a lm o s t doubled f r o m a fourth to n e a r ly a half. A s a resu lt , earn ings f o r the m idd le half o f the p rod u ct ion w o r k e r s shifted f r o m the $1 .30 to $2 range in 1954 to the $ 1 .4 5 to $ 2 .4 0 range in 1958, in c re a s in g the span b y 2 5 cen ts .

F a c t o r y w o r k e r s 1 earn ings f r o m 1954 to 1958 a ls o r o s e in each o f the fou r r e g io n s . In s o m e r e s p e c t s , h o w e v e r , the wage re la t ion sh ip s am ong the r e gions changed during this p e r io d . (See chart 6 C )

P ay le v e ls in c re a s e d during the 4 -y e a r p e r io d by 2 7 cents in the N orth east and the South, 32 cents in the W/est, and by 33 cents in the North C entra l. C on sequently , while the c e n t s -p e r -h o u r d if feren tia ls w idened on ly betw een the South and the latter two r e g io n s , p e rce n ta g e d if feren tia ls n a rro w e d s lightly betw een the South and a ll other r e g io n s . The resu lts a re tabulated b e lo w :

A v e r a g e h ou rly earnings

I n c r e a s e 1954-1958

C e n ts -p e r -R egion 1954 1958 hour P e r ce n t

S o u t h ----------------------- $ 1 .3 6 $1. 63 $ 0 .2 7 19.9N o r t h e a s t --------------- 1. 67 1 .9 4 .2 7 16 .2North C e n t r a l ----- 1 .80 2. 13 . 33 18. 3W e s t ------------------------ 1 .9 4 2 .2 6 . 32 16. 5


9The p r in c ip a l changes in the d is tr ibut ion of w ages in the South o c c u r r e d at the e x tre m e ends of the pay s ca le . The p ro p o r t io n of w o r k e r s earning le s s than $1 an hour d e c r e a s e d f r o m 28 p e rce n t in 1954 to 1 p e rce n t in 1958 and those at the $1 to $ 1 .0 5 interva l in c re a s e d f r o m 6 to 16 p e rce n t . Only 3 p e rce n t o f the w o r k e r s earned $2. 50 o r m o r e in the e a r ly p e r io d c o m p a re d with 12 p e rce n t in the la ter p e r io d .

The N ortheast w hich fo l low ed the South in n u m bers of w o r k e r s at the lo w e r e a rn in g s 1 le v e ls a lso showed a substantial red u ct ion in the p ro p o r t io n of w o r k e r s earn ing le s s than $1 (8 to 1 p e rce n t ) , but the p ro p o r t io n of w o rk e rspaid $1 to $ 1 .2 5 was about the sam e in both p e r io d s . The m a jo r shift in e a rn ings o c c u r r e d around the new a v e ra g e ($ 1 .9 4 ) ; w h ereas 37 p e r c e n t of the w o rk e rs r e c e iv e d $ 1 .5 0 to $2 an hour in 1954, only 29 p e rce n t earned that am ount in 1958. C o n cu rren t ly , the p ro p o r t io n of w o r k e r s earn ing $2 or m o r e n e a r ly doubled f r o m 23 to 44 p e rce n t .

Changes in the d istr ibut ion of earnings in the North C entra l and W est reg ion s p a r a l le le d , f o r the m o s t part , the pattern d e sc r ib e d in the N ortheast , excep t that the changes w e r e m o r e p ron ou n ced around the $2 m a rk . The p r o p ort ion s of w o r k e r s earn ing $ 1 .5 0 to $ 2 decl ined substantia lly ; the m a jo r i t y of w o r k e r s in both reg ion s earned at le a s t $ 2 an hour; and the p ro p o rt io n s of w o r k e rs earning $ 2 .5 0 o r m o r e r o s e f r o m 7 to 24 p e r c e n t in the North C entra l and f r o m 9 to 31 p e r c e n t in the W est .

A v e r a g e h ou rly earn ings fo r w o r k e r s in durable goods industr ies advanced 18. 5 p e r c e n t f r o m $ 1 .7 8 in 1954 to $ 2 .1 1 in 1958. In nondurable goods in d u str ies , earn ings a vera ged $ 1 .5 4 in 1954 and $ 1 .7 9 in 1958, an in c r e a s e of 16 p e rce n t . Thus, earn ings in durable goods industries in c re a s e d 8 cents m o r e than in n on durable goods in d u str ies .

In both industry groups the p ro p o rt io n s of w o r k e r s decl in ed at the lo w e r earnings lev e ls and in c re a s e d at the upper end o f the pay s ca le , but not in the sam e p ro p o r t io n s . In 1954, about 20 p e rce n t of the nondurable goods w o rk e rs earned le s s than $ 1 .0 5 an hour co m p a re d with 9 p e r c e n t in 1958. In con trast , on ly 8 p e rce n t of the w o r k e r s in durable goods earned le s s than $ 1 .0 5 in the e a r ly p e r io d and about 4 p e rce n t in the la ter p e r io d . On the other hand, the p ro p o r t io n of w o r k e r s in durables earn ing $2 or m o r e in c re a s e d by a p p rox im a te ly 30 p e r c e n t age points betw een 1954 and 1958, about tw ice the p ro p o r t io n in non du rab les .

As part of a b roa d p r o g r a m of studies initiated b y the U .S . D epartm ent o f L a bor to study the e c o n o m ic e f fe c ts of the $1 F e d e ra l m in im u m w age , the B ureau conducted a su rv e y of earn ings in A p r i l 1956 f o r fa c t o r y w o r k e r s in five m a jo r m anufacturing industry groups fo o d , te x t i le s , app are l , furn itu re , and le a th e r . 9 Thus, the data a re ava ilab le to p e rm it exam ination o f the changes in w age s tru c tu res in these f ive lo w -w a g e industry groups at in terva ls of 2 y ea rs betw een 1954 and 1958. In addition , s om e light can be shed on the trends in

9 F a c t o r y W ork ers* E arnings in 5 Industry G rou ps , A p r i l 1956, BLS R e p ort 118, June 1957.


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earn ings during the 4 -y e a r p e r io d by the use of other s ta t is t ica l data furn ished m on th ly b y the B ureau in its E m p loy m en t and Earnings S e r ie s . 10

A m on g the f iv e industry g rou p s , a v e ra g e h ou r ly earn ings in A p r i l 1954 ranged f r o m $1.31 in textiles to $ 1 .4 9 in furn itu re . W age advances during the f o l low ing 2 y e a rs v a r ie d f r o m 4 cents in text iles to 18 cents in fo o d s . P a y in c re a s e s w e r e g r e a te r in the h igher paid industry grou p s , and the abso lu te and re la t iv e wage d if fe ren tia ls w idened betw een text iles and the other in d u str ies . B etw een A p r i l 1956 and M ay 1958, a v e ra g e h ou r ly earn ings in c re a s e d 6 cents in both app are l and lea th er , 7 cents in te x t i le s , 12 cents in food , and 15 cents in fu rn itu re . Earnings d i f fe r e n ce s betw een the lo w e r and h igher paid groups continued to w iden betw een 1956 and 1958.

In each o f the f ive indu stry g rou p s , substantial p ro p o r t io n s of w o r k e r s earned l e s s than $1 an hour in 1954; 3 0 .9 p e rce n t in app are l , 2 6 . 1 p e r c e n t in lea th er , 16. 7 p e rce n t in food , and 14. 6 p e r c e n t in textiles and in furn itu re . T o geth er , these groups constituted th re e - f i f th s o f the IV4 m i l l io n w o r k e r s who r e ce ived le s s than $1 an hour in A p r i l 1954. B y A p r i l 1956, a substantial shift o c c u r r e d at the lo w e r end o f the wage d istr ibut ion in re s p o n se to the $1 m in im u m wage w hich had b e c o m e e f fe c t iv e the p rev iou s m onth. A l l f ive industry groups showed s ign if ican t con cen tra t ion s of w o r k e r s earning $1 to $ 1 .0 5 an h ou r, ranging f r o m 10. 7 p e r c e n t in food to 25. 1 p e rce n t in a pp are l . Som e wage adjustm ents a ffe cted earn ings above $ 1 .0 5 betw een 1954 and 1956 but only in food and to a l e s s e r extent in furn iture w e r e there s ign if ican t changes in the p ro p o r t io n of w o r k e rs earning $ 1 .2 5 or m o r e .

B etw een A p r i l 1956 and M ay 1958, s om e m o v e m e n t o f w o r k e r s o c c u r r e d f r o m the lo w e r w age le v e ls ( le ss than $ 1 .2 5 ) to h igh er wage le v e ls ( $ 1 .2 5 or m o r e ) in appare l and leath er . This m o v e m e n t was m o r e pron ou n ced in tex t i le s , w h ere the p ro p o r t io n of w o r k e r s earn ing $ 1 .2 5 to $ 1. 50 in c re a s e d by about 5 p e r centage points as did the p ro p o r t io n earning f r o m $ 1 .5 0 to $2 an hour. The m a jo r shift in food and furn iture took p la ce at the $2 le v e l . The p ro p o r t io n of w o r k e r s earning at le a s t $2 an hour in c re a s e d f r o m 24 to 37 p e r c e n t in the food group and f r o m 20 to 31 p e rce n t in the furn iture group . (See chart 7. )

10 The s tra ig h t -t im e h ou r ly earnings a v era g es in this su rv e y d if fe r f r o m those in the B u rea u 's m onth ly hours and earn ings s e r ie s in w hich g r o s s a vera ge h ou r ly earn ings a re p ub lished . The d i f fe r e n ce s a re la r g e ly a ccou n ted f o r by the e x c lu s io n in the p re s e n t study of p re m iu m pay fo r o v e r t im e and fo r w o r k on w e e k ends, h o l id ay s , and late sh ifts . In addition, estab lish m en ts in this su rv ey are w eighted in a c co r d a n ce with their p ro b a b il ity o f s e le c t io n f r o m a r e g i o n a l - s i z e - industry c la s s . This d i f fe rs f r o m the weighting pattern em p loy ed in the m onthly g r o s s a v era g e h ou rly earnings s e r ie s w hich is intended to indicate trends in e a r n ings ra ther than le v e ls . In the m onth ly s e r i e s , data contained in each e s ta b l is h m e n t 's r e p o r t a re aggregated into industry totals f r o m w hich the in d u stry 's a v era g e h ou r ly earn ings a re ca lcu la ted . A third d i f fe re n ce betw een the two s e r ie s is that the s tra ig h t -t im e earn ings a v e ra g e s a re obtained f r o m individual e m p lo y e e s t ra ig h t -t im e earn ings w hich are sum m ed and the total then divided by the num ber of e m p lo y e e s ; in the m onth ly g r o s s a v e ra g e h ou r ly earn ings s e r i e s , a v e ra g e s f o r an industry a re obtained by dividing the aggregated total w eek ly p a y r o l l b y the aggregated total n u m ber of w eek ly h o u rs .


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The new F e d e ra l m in im u m wage contributed only in part to the r is in g trend of w ages in the f iv e industry groups betw een A p r i l 1954 and M ay 1958. The e co n o m y , v iew ed b ro a d ly , had been opera tin g at le s s than full ca p ac ity in 1954 and was ra p id ly showing signs o f r e c o v e r y in 1955. A v e r a g e h o u r ly e a rn ings in te x t i le s , app are l , and leath er exhibited little change b etw een A p r i l 1954 and A ugust 1955. 11 Im m ed ia te ly fo l low in g the enactm ent of the h igher m in im u m w age, a v e ra g e s in these groups began to r i s e and this r i s e continued through1956. E arnings in leath er in c re a s e d m o r e sh arp ly betw een August 1955 and M a rch 1956 than in text iles and a pp are l . W ages in the la tter two industry groups lev e led off during 1957, rem ain in g quite stable through M ay 1958, while the wage trend in leath er continued s lightly upw ard. The furn iture group av era g e started to swing upward in the spr ing of 1955 and continued to r i s e gradu ally through M ay 1958. This rate of in c re a s e during the im m e d ia te ly e f fe c t iv e p e r io d of the F e d e ra l m in im u m (August 1955 A p r i l 1956) was not s ig n if ican tly d if feren t f r o m that r e c o r d e d in la ter p e r io d s . W ages in the food grou p , although a ffected by the se a so n a l influence of the canning in d u s tr ies , g e n e ra l ly m o v e d upward at a steady rate o v e r the w hole 4 -y e a r p e r io d . (See chart 8. )

A c o m p a r is o n of the g en era l wage m o v e m e n t f r o m A p r i l 1954 to M ay 1958 in two o f the lo w -w a g e industry grou ps text iles and appare l with two h ig h -w age grou ps tran sportat ion equipm ent and p r im a r y m e ta ls in d ica tes : ( l ) The amount o f in c re a s e o v e r the 4 -y e a r p e r io d was co n s id e r a b ly g r e a te r in the h igher wage groups than in the lo w e r w age grou ps ; (2) ex cep t in a few in s ta n ces , the trend line in the h ig h -w a ge groups m ov ed continuously upw ard, w h ereas upward swings in the lo w -w a g e groups w e r e g e n e ra l ly fo l low ed b y a l e v e l in g -o f f p e r io d ; and (3) the r i s e in earn ings in the lo w -w a g e groups can be attributed in part d ir e c t ly to F e d e r a l m in im u m w age le g is la t io n , w h ereas earn ings in the h ig h -w age groups w e r e h ard ly a ffe cted , if at a ll , b y the in c r e a s e in the m in im u m w age .

11 E m p loy m en t and E arn in gs , Bureau of L a b o r S ta t is t ics , adjusted to exc lu de p re m iu m pay f o r o v e r t im e w ork .

The data w ere


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Chart 1. Cumulative Percentage Distributions of Production Workers in Manufacturing Industries, by Hourly Earnings*

United States and South, April 1954 and May 1958

Percent

Under .80 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 2.60 2.80 3.00Hourly Earnings(ln Dollars)

UNITED STATES DEPARTMENT OF LABORBUREAU OF LABOR STATISTICS

*Excludes premium pay for overtime and for work on weekends, holidays, and late shif ts.


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Chart 2. Cumulative Percentage Distributions of Production Workers in Metropolitan and Nonmetropolitan Areas, by Hourly Earningsf May 1958

Percent

Chart 3. Cumulative Percentage Distributions of Production Workers In Durable Goods and Nondurable Goods Industries, by Hourly Earnings* May 1958

Percent

UNITED STATES DEPARTMENT OF LABORBUREAU o f la b o r s t a t is t ic s

Excludes premium pay for overtime and for work on weekends, holidays, and late shif ts .


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Chart 4 . Percentage of Production Workers in of Selected Manufacturing Industry Groups Earning

Component Industries Less Than $1.25 an Hour*

May 1958PercentlO O F ^

90

80

70

60

50

40

3 0

2 0

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