2008 Salary Survey Shows Median Rose 10 Percent in Two Years

The median base pay of NABE members rose by 10 percent between 2006 and 2008 to $119,999 this year, according to the just-released salary survey results.

That means that, on average, salaries of NABE members more than kept up with inflation. The consumer price index for all urban consumers (CPI-U) rose by 6.9 percent between May 2006 and May 2008.
The survey results from 611 NABE members reporting base annual earnings in 2008 also showed that 70 percent had additional gross compensation. The median amount of this compensation was $25,000, and this additional income averaged 21 percent of the median base salary.

NABE survey analysts Bill Strauss and Bruce Kratofil said that as a reference point, the Bureau of Labor Statistics reported that in May 2006 (most recent data available), there were 15,000 economists, with a median salary of $77,010.

Entry-Level Pay Up 12 Percent

Median entry-level base salary was $59,998 in 2008, up 12 percent from 2006, according to the latest NABE survey. This year’s survey also showed that the most popular educational levels sought by employers for a new entrant were a master’s degree (43 percent) or a bachelor’s degree (30 percent).
The survey also showed the extent to which income rises with education. A bachelor’s degree commanded a median salary of $93,898, a master’s $102,998, an “A.B.D.” $119,999, and a Ph.D. $145,000. Graduates of “top-ranked” economics departments earned a median of 36 percent more than other graduates.

Economists working in the securities and investments industry reported the highest median base salary of $144,000 in 2008, as well as the highest median gross compensation of $105,000. The industry showing the lowest base pay was the transportation, utilities, and communication sector, with a median of $99,000.

Female respondents reported a median salary of $100,001, 81 percent of the male median of $124,002. That percentage is somewhat higher than the 78 percent shown in the 2006 survey of NABE members.
Median base salaries differed by region. The Mountain region had the lowest median, the Middle Atlantic region the highest.

Government/central bank and consulting comprised the largest categories of respondents with 16 and 15 percent, respectively. The industry mix was similar in the 2006 survey, although manufacturing showed a comeback, going from 4.7 percent to 8.2 percent of respondents.

The 2008 survey was conducted in April and May, with questionnaires distributed to 1,779 standard, group, and fellow members via e-mail and postal mail. NABE received 615 responses, for a response rate of 35 percent, slightly higher than in 2006. Of the 615 responding, 611 reported base annual earnings data. The survey is available to all members at no charge; nonmembers can buy it for $250.