Bimodal Salaries

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starry eyed
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Bimodal Salaries

Postby starry eyed » Fri Apr 10, 2015 9:47 am

What's up with the bimodal salary distribution in the legal industry? After looking at MBA grads starting salaries, they have a much more evened range with a median salary that is actually possible to attain (most law schools have median salaries 80-100k which no one actually makes). Back in the day, was it like this? Or is this a recent phenomenon?

kcdc1
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Re: Bimodal Salaries

Postby kcdc1 » Fri Apr 10, 2015 10:04 am

It's a product of law firms' pricing being bimodal. There's a group of reputable large law firms with very high billing rates that companies turn to for important matters. Those firms pay starting salaries of 160k. Then there's a class of small firms with lower billing rates that typically handle smaller matters. Those firms tend to pay starting salaries less than half of what the big firms pay.

milkisforbabies
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Re: Bimodal Salaries

Postby milkisforbabies » Fri Apr 10, 2015 10:13 am

starry eyed wrote:What's up with the bimodal salary distribution in the legal industry? After looking at MBA grads starting salaries, they have a much more evened range with a median salary that is actually possible to attain (most law schools have median salaries 80-100k which no one actually makes). Back in the day, was it like this? Or is this a recent phenomenon?


Not sure how much it helps with the history of bimodal salaries, but I always thought this series of posts was interesting for past biglaw breakdowns:

http://abovethelaw.com/2014/06/flashbac ... 0s-part-1/

http://abovethelaw.com/2014/07/flashbac ... 0s-part-2/

http://abovethelaw.com/2014/09/flashbac ... 0s-part-3/

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MikeSpivey
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Re: Bimodal Salaries

Postby MikeSpivey » Fri Apr 10, 2015 10:15 am

starry eyed wrote:What's up with the bimodal salary distribution in the legal industry? After looking at MBA grads starting salaries, they have a much more evened range with a median salary that is actually possible to attain (most law schools have median salaries 80-100k which no one actually makes). Back in the day, was it like this? Or is this a recent phenomenon?


I believe it is less bi-modal now that it was during the go-g0 years as the front (top) end has come down in relative terms, but I could be wrong. obviously it is a vastly different distribution than other entry graduate professions.

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A. Nony Mouse
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Re: Bimodal Salaries

Postby A. Nony Mouse » Fri Apr 10, 2015 10:16 am

This article talks about the development: http://www.nalp.org/uploads/0812Research.pdf

Also, am I wrong, or does the NALP survey includes all jobs, not just firms?

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Desert Fox
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Re: Bimodal Salaries

Postby Desert Fox » Fri Apr 10, 2015 10:19 am

It is more recent.

There are jobs in the middle but those firms are not interested in hiring entry level. If you look at salary ten years out, I doubt it will be bimodal.

It is exacerbated by the glut of terrible law grads who drive entry salaries down.

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A. Nony Mouse
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Re: Bimodal Salaries

Postby A. Nony Mouse » Fri Apr 10, 2015 10:24 am

Bimodal curve shows up around 2000.

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Tiago Splitter
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Re: Bimodal Salaries

Postby Tiago Splitter » Fri Apr 10, 2015 10:31 am

A. Nony Mouse wrote:This article talks about the development: http://www.nalp.org/uploads/0812Research.pdf

Also, am I wrong, or does the NALP survey includes all jobs, not just firms?

It includes all jobs but there's a lot of underreporting, which we assume is mostly from the bottom end of the distribution.




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