Are gay men discriminated against by employers? Yes, according to a new study which appears in the Journal of Labor Research.
The study, co-authored by Bruce Elmslie, professor of economics at UNH Whittemore and Edinaldo Tebaldi of Bryant University in Rhode Island, contains an in-depth analysis of wage and labor data collected by the U.S. Census in March 2004. The dataset represents over 91,000 heterosexual and homosexual couples.
According to the authors, gay men who live together earn 23 percent less than married men, and 9 percent less than unmarried heterosexual men who live with a woman. Discrimination is most pronounced in management and blue-collar, male-dominated occupations such as building and grounds cleaning and maintenance; construction and extraction; and production.
The authors also found that lesbians are not discriminated against when compared with heterosexual women. They conclude that while negative attitudes toward lesbians could affect them, lesbians may benefit from the perception that they are more career-focused and less likely to leave the labor market to raise children than heterosexual women. According to their study, 18.1 percent of lesbians have children, compared with 49.4 percent of straight women.
Within the study, the authors suggest that employer disapproval of the gay lifestyle, fears about offending customers and concerning the transmission of HIV/AIDS may be affecting hiring and salary decisions. While these are certainly plausible theories, the data they examined does not truly provide any information regarding these potential causes, and more research is needed to justify their assertions.
I believe this study raises more questions than it answers, but the data revealed remains of interest, regardless of the whys.
I’ve long been disturbed that even in 2007, salary and position inequalities still exist between men and women, but until now, I hadn’t realized that homosexual men were affected as well. Gay couples already face unique retirement challenges, and compensation inequities only exacerbate the issue.
I’m still mighty proud of that particular achievement, but this morning, an article from Ignites, an electronic publication available to corporate subscribers only, crossed my path and completely changed my perspective.
At $450,000-some a year, it seems I could have paid off my loans in about ten minutes, instead of ten years. Alas, it’s a long, hard road for those of us who are math-averse.
But maybe there’s a message in this for some of you out there, those of you who have enough of an interest in financial topics to regularly read blogs like this one.
In doing some research, I happened across a Boston-based job listing which shows the sheer earning potential of this type of career. A full-time position requiring a Ph.D in Math or Physics and 7 to 10 years of relevant work experience, it offers $450-600K in total compensation. There are lots more such jobs out there, too, but this one openly lists its salary range. I’ll repost here so you can see what’s involved:
Leading Asset Management Firm in Boston seeks a Sr. Fixed Income Quantitative Analyst. On a daily basis the successful candidate will recommend specific relative value strategies to the PM. Additional responsibilities include: implementation and development of pricing and risk models for cash and derivative products, interaction with Currency and Structured Credit Products analysts and PM’s, and programming in C++ and/or VB. Requires a minimum of 7 years experience in F.I. as a Quantitative analyst on the buyside. Also requires a PhD in Math or Physics in addition to strong communication and leadership skills.
Now there’s a nice payback for a Ph.D! I’m amused because I recall my math-genius brother (someone had to get all the analytical skills in my family) dropping his Physics major in college because he felt there wasn’t much income potential with such a high-flown degree, and university jobs seemed scarce. He switched over to Computer Science, which seemed more lucrative. But I don’t know any CS majors earning over $450K unless they’ve founded their own companies. Sorry, big brother! He got his Masters from Stanford, too.
Those of you qualified for this position should not read beyond this point – you should be applying for the above position posthaste. For everyone else, I’ll give an overview of the Ignites article, since many of you won’t be able to read it directly.
In the article, Kevin Burke details the recent results of a CFA Institute study, finding that equity portfolio managers are the top earners among investment professionals, with an average salary of $456,000 a year. Polling more than 75,000 investment professionals worldwide, they received over 13,500 responses, and learned lots of juicy details about industry salaries.
A CFA news release from Thursday shares some of the facts:
In the U.S., the three highest compensated positions at all levels of experience are portfolio managers (equities) ($456,000), followed by investment bankers ($275,000) and then sell-side research analysts ($195,000). Buy-side research analysts (equity and fixed income) fall in the middle of the pack at all levels of experience.
The pattern for cash bonus is also affected by years of experience. There is little variability in median cash bonus for those with less than five years of experience. However, the gap widens at five to 10 years of experience. At all levels of experience, portfolio managers (equities) ($200,000) and investment bankers ($185,000) reported cash bonuses that are more than double that for most other occupations.
Not just is there a high potential payoff for choosing this career path, but after putting in your five years, the financial outlook keeps getting rosier. Granted, there’s likely some attrition here, with those who aren’t as qualified weeded out while those who are successful begin to see increased rewards and bonuses. After the ten-year mark, the average portfolio manager compensation grows to $499K.
A significant portion of the managers’ compensation comes from performance-based bonuses. Ninety percent of those surveyed were bonus-eligible, and indicated that, on average, bonuses comprise 25% of their overall package. Bonuses can be tied to individual, business unit, and/or firm performance. Some are a percentage of total assets.
The bonus component also means that companies aren’t stuck paying high salaries when the market’s down. So this certainly isn’t a rest-on-your-laurels type job, but there’s ample reward for a job well done.
Unsurprisingly, location also affects compensation, with the highest earners across all levels operating out of New York City, followed by other major metropolitan areas.
Who knew a Ph.D in Math or Physics could be so lucrative? It may be too late for my brother to become a portfolio manager, but perhaps, if you’re seeking a career change, it’s not too late for you.
Today, and every summer through 2009, the federal minimum wage will increase $0.70 an hour. For those working full time at the federal minim wage, the increase to $5.85 an hour will mean an extra $1,400 over the previous rate. This 14% raise is pretty significant, but it still keeps the minimum wage earner who provides for a family of three in poverty.
If minimum wage increases kept pace with inflation since 1970, the minimum wage today would be $8.77. If it tracked inflation since 1956, the wage would be $7.27.
Interestingly, the minimum wage would be $3.39 if 1938′s rate of $0.25 was adjusted for inflation.
Here in New Jersey, the state minimum wage is already $7.15. The state’s economy hasn’t collapsed yet and business owners seem to be getting by. All salaries in the state seem to be somewhat higher than most of the nation. Real estate prices and property taxes are higher, and insurance rates are higher, but gas prices are lower.
Higher minimum wage can be done. Businesses who claim they will have to let employees go or raise prices will do what they have to do to survive and compete, and most likely find a way to make it work without the threatened layoffs. The staggered increases will help these businesses, particularly when compared to an immediate full increase to $7.25.
But is a minimum wage hike just an empty gesture? If minimum wage earners are mostly suburban teenagers from families nowhere near poverty, then a minimum wage hike doesn’t help those struggling in poverty, who most likely work part time at a job a little bit higher than the minimum wage.
Well, it will help indirectly, because those close-to-minimum-wage jobs, like those Wal-Mart, will be buoyed by the wage hike.
The minimum wage hike is necessary but it’s probably not going be the biggest contributor to the mission of making poverty history.
Here are the latest figures for average starting salaries.
* Chemical engineering: up 5.4% to $59,361 * Computer engineering: up 4.8% to $56,201 * Mechanical engineering: up 4.6% to $54,128 * Electrical engineering: up 3.2% to $55,292 * Civil engineering: up 5.4% to $48,509 * Computer science: up 4.1% to $53,396 * Information science: up 4.6% to $50,852 * Economics: $48,483 (new to the list) * Finance: $47,239 (new to the list) * Information systems: up 4.2% to $47,648 * Marketing: up 6.1% to $40,161 * Accounting: up 2.3% to $46,718 * Business administration: up 3.9% to $43,701 * Political science: up 5.9% to $34,590 * English: up 5.3% to $32,553 * Psychology: up 4.7% to $31,631 * Sociology: up 3.5% to $32,033 * History: up 3.3% to $33,768
Granted that my work location offers salaries somewhat below our New York City counterparts, I get the impression from talking to people in my department that the salaries of people who have been here for a while are on par with these starting salaries, and recent grads might even see something significantly lower. If I were to move to a different department — one that makes money for the company — that may not be the case.
NACE Salary Survey [National Association of Colleges and Employers]
Hewitt Associates is saying that companies are not planning above average base pay increases in 2008 thanks to rising health insurance costs. This is the same reason I’ve heard over and over again. Average employees have nothing to look forward to in terms of raises, as perhaps they shouldn’t have. Even above average employees will ... Continue reading this article…
If you’re reading this blog, the answer to the question in the title is, “Probably not.” Perhaps a better question is whether you can live on the mean incomes provided by the occupations on Forbes’ 25 Worst-Paying Jobs. As I said when commenting on the top 25 jobs, the “mean” calculation is often meaningless as ... Continue reading this article…
Here’s a list on which you won’t find “senior accounting associate.” It’s the 25 best-paying jobs, in terms of base salary in 2006 of salary and wage workers, not including the self-employed. Here are the top 25 along with their mean salaries, from Forbes. * Anesthesiologists: $184,340 * Surgeons: $184,150 * Obstetricians And Gynecologists: $178,040 ... Continue reading this article…
Recently, Mapgirl’s 401(k) balance surpassed the $20,000 balance milestone. That’s not small accomplishment for less than two years on the job. For comparison, I’ve been investing in my 401(k) for more than five years now, and my balance is only approaching $40,000 including company match. I started investing only 4 percent of my salary and have ... Continue reading this article…
A study by a group of research organizations have determined that men in their thirties are earning less, when adjusted for inflation, than their fathers earned in their thirties. Studies like this help to explain the reported financial condition of younger households throughout the United States. Relying on Census Bureau figures, the study’s authors found ... Continue reading this article…
Mother’s Day is approaching, which means you’re going to start hearing about a certain survey in noth the traditional and the “alternative” media. The paycheck comparison website, Salary.com, creates a questionnaire each year to determine the value of the work a mother does for her family. By determining the ten most popular “jobs” a mom ... Continue reading this article…
Jeanne Sahadi over at CNN Money is spilling the beans again, and this time it’s about salary. Your managers know these precious pieces of info, but you might not. Armed with this knowledge, you could be better poised to tip the scale in your favor next time you negotiate. Here’s the summary. 1. Secret: Your ... Continue reading this article…
There are no fancy introductions here. Getting right down to it, the average salary for Wall Street is $289,664, while the average for all of New York City is “only” $56,634. The Reuters report includes more money figures, but the only piece I find particularly interesting is the average bonus per person: $125,000. My bonus ... Continue reading this article…
If you’ve been wondering why your average raises over the last few years haven’t helped you get ahead, it’s because, as the New York Times reports, real wages (after factoring in inflation) have actually declined 2 percent since 2003. Apparently, the last time this has been the situation was during Wolrd War II. The drop has ... Continue reading this article…
I apologize for not having much to write today. I’m sure there is much to write about, but today and the next few days I expect to be swamped with work in the office, where I realized that thanks to no overtime being offered, despite an 8 percent higher salary this year, I’m making less money ... Continue reading this article…
All you have to do to earn $42,000 a day, or $11 million each year, is be average. Wait, when I say “average,” I mean “average CEO.” That’s not so hard to do, right? In 2005, if you were the average CEO, you made 262 times what the average worker made, $41,861 anually. Critics of ... Continue reading this article…
I’m a little concerned. I’m making more taxable income this year outside of my full-time job, but my tax withholding was calculated based on only my full-time income. Last year I had a few thousand dollars extra income, but I was able to use related expenses and my SEP IRA to offset a good portion ... Continue reading this article…
This is an interesting article from the New York Times. Research shows that your first job dictates how much your income will be your entire working career. The recent evidence shows quite clearly that in today’s economy starting at the bottom is a recipe for being underpaid for a long time to come. Graduates’ first ... Continue reading this article…
A feature on MSN Money looks at finances of people in their twenties. The feature includes statistics such as median net worth, median income, percentage owning homes, etc. with which you can compare yourself if you happen to be in this particular demographic. At age 29, I was doing well compared to these averages, but ... Continue reading this article…
Earlier this month, Personal Finance Advice and others reported on a study by Salary.com saying that a stay-at-home mom’s job is equivalent to an amalgamation of many vocations that would together provide an annual salary of $134,121. Carl Bialik, the “Numbers Guy” at the Wall Street Journal calls foul. The Wall Street Journal likely emailed ... Continue reading this article…
Here’s another article on the outrageous pay given to CEOs even when their performance is subpar. Last year, there were five specific offenders singled out. Today, there are five different companies, and drugs are on top: * The CEO of Pfizer, Henry McKinnell, made more than an average of $15.5 million a year while the ... Continue reading this article…
Luke Landes founded Consumerism Commentary in 2003 and has been building online communities since 1990. Luke has contributed to PC World Magazine, US News, Forbes, and other publications. Read more about Luke and about Consumerism Commentary.
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