Bimodal Salaries Forum

[starry eyed]

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]

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]

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/

[ms9]

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.

[A. Nony Mouse]

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?

[Desert Fox]

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.

[A. Nony Mouse]

Bimodal curve shows up around 2000.

[Tiago Splitter]

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.