26
THE CONSTRUCTION CHART BOOK
Wages in Construction, by Demographic Characteristics, Unionization,
and Region
Wages of construction workers vary by demographic characteristics (such as age, gender, race, ethnicity, and education), union
status, and region, according to data collected by the Current
Population Survey (CPS, see page 10). Unlike the Occupational
Employment Statistics program that collects wage data from
employers (see page 25), the CPS asks wage earners about their
hourly pay, excluding overtime pay, tips, and commissions.
Workers’ age and educational attainment are two main
contributors to wage differences. In general, wages increase with
age (except for the oldest worker group) and educational attainment. In 2010, construction production workers who were under
20 years old were paid nearly half the amount of their counterparts aged 45 years or older (chart 26a), and workers without a
high school diploma earned about $5 less per hour than workers
who were high school graduates (chart 26b). Production construction workers with some college earned almost 9% more (or
$1.68 more per hour) than workers who were high school graduates, but only 1% less (or $0.28 less per hour) than their counterparts with college degrees or above.
Another wage differential in construction is the substantial advantage union members hold over non-union workers.
Among production workers, union members earn on average
57% more than non-union workers. In 2010, the average union
wage for production workers was $25.76 per hour, and only
$16.41 per hour for non-union production workers.1 Union members, on average, are slightly older and more educated than nonunion workers (see pages 15 and 30), which may partially contribute to the higher wages for union members. Other possible
reasons may be due to higher productivity and training levels (see
page 31) that cannot be directly assessed with the CPS data.
On average, Hispanic construction workers earned less
than their white, non-Hispanic counterparts ($15.19 vs. $19.99
26a. Average hourly wage in construction, by age group,
2010 (Production workers)
per hour; chart 26c). This was largely due to earning differences
in the non-union sector, in which Hispanic workers made 20%
less than white, non-Hispanic workers ($14.33 vs. $17.94 per
hour); while in the union sector, the wage difference between the
two ethnicities was less than 3% ($25.31 vs. $25.98 per hour).
Similarly, construction workers who were racial minorities
earned less than non-minority workers, while unionized minority
workers earned 56% more on average than their counterparts who
worked in non-unionized construction sectors ($24.66 vs. $15.85
per hour; chart 26d).
Unionization wage differentials also vary by gender. For
male workers in construction production occupations, union pay
is roughly 54% higher than non-union pay. Moreover, male construction workers tend to earn more than female construction
workers across the board. The wage differential is greatly pronounced in the union sector, in which male workers in construction were paid $3.69 more per hour than female workers in construction (chart 26e). The difference within the union sector is
likely due to occupational distribution and other disparities
among gender, racial, and ethnic groups (see pages 18-20).
When wages are compared among U.S. regions (see
Glossary), construction workers in the South, which is less unionized than other regions (see page 13), made less than their counterparts in other regions, both unionized and non-unionized.
The average hourly wage in the South is 26% and 22% less than
in the Northeast and Midwest regions, respectively, and 20% less
than in the West (chart 26f). Overall, disparities in age, educational attainment, occupational distribution, and unionization
among workers with various ethnic and regional differences all
contribute to wage differences in the construction industry.
26b. Average hourly wage in construction, by educational
attainment, 2010 (Production workers)
$25
$25
$20.63
$19.50
Average hourly wage
$19.31
$20
Average hourly wage
$21.19
$16.90
$15
$13.44
$11.24
$10
$15
$20.78
$21.06
Some college
Bachelor's &
above
$19.10
$20
$14.05
$10
$5
$5
$0
$0
16-19
20-24
25-34
35-44
Age group
45-54
55-64
65+
1. U.S. Bureau of Labor Statistics. 2010 Current Population Survey. Calculations by CPWR Data Center.
Less than HS
diploma
HS diploma
Educational attainment
26
26c. Average hourly wage in construction, by Hispanic
ethnicity and union status, 2010 (Production workers)
$25
$25.98
$25
$19.99
$20
$17.94
$14.33
$15
$15.19
$10
$5
Average hourly wage
Union
Non-union
All
$25.31
Average hourly wage
26d. Average hourly wage in construction, by racial
minority and union status, 2010 (Production workers)
$30
$30
Union
Non-union
All
$24.66
$20
$15.85
$25.86
$18.29
$17.25
$16.48
$15
$10
$5
$0
$0
Hispanic
White, non-Hispanic
26e. Average hourly wage in construction, by gender and
union status, 2008-2010 average (Production workers)
$30
$25.33
Racial minority
26f. Average hourly wage in construction, by region and
union status, 2010 (Production workers)
Northeast
$21.64
$20
Non-minority
Average hourly wage
Union
Non-union
All
$25
Average hourly wage
THE CONSTRUCTION CHART BOOK
$26.35
$18.22
$21.11
$18.28
$16.43
$15.55
$16.69
$25.95
Midwest
$15
$16.97
$19.99
Union
Non-union
$21.45
$10
South
All
$15.17
$15.52
$5
$26.88
West
$0
Men
Women
$17.60
$19.44
Note:
All charts - Production workers are blue-collar workers - all workers except managerial, professional (architects, accountants, etc.), and administrative support staff.
Data include all hourly wage earners who reported their pay on an hourly basis and whose wages were greater than zero. Self-employed workers were excluded.
Chart 26a - The minimum sample size was 92 for the 65+ age group; standard errors of wages were within ± 5%; ranges between upper and lower levels (95% CI) were
within $4.50; p-value < 0.001.
Chart 26b - The minimum sample size was 224 for the college and above education group; standard errors of wages were within ± 5%; ranges between upper and lower levels
(95% CI) were within $4.00; p-value < 0.001.
Chart 26c - The minimum sample size was 94; standard errors of wages were within ± 5%; ranges between upper and lower levels (95% CI) were within $4.00; p-value < 0.001.
Chart 26d - “Minority” combines all racial groups except “white only.” The minimum sample size was 101; standard errors of wages were within ± 4%; ranges between upper
and lower levels (95% CI) were within $4.00; p-value < 0.001.
Chart 26e - Wages were averaged across three years (2008-2010) in 2010 dollars; wages in 2008 and 2009 were adjusted by using the Urban Wage Consumer Price Index
(CPI-W, see Annex). The minimum sample size was 69; standard errors of wages were within ± 5%; ranges between upper and lower levels (95% CI) were within $4.00;
p-value < 0.001.
Chart 26f - The minimum sample size was 131, standard errors of wages were within ± 3%; ranges between upper and lower levels (95% CI) were within $3.00; p-value < 0.001.
Source:
All charts - U.S. Bureau of Labor Statistics. 2010 Current Population Survey. Calculations by CPWR Data Center.