(Continued) ...
General Observations of the Nine Groups
At the age of 25, median annual earnings range from a low of .81 up to 2.13 of baseline earnings-a variation of 1.32. By ages 60-64, median annual earnings spread more widely. The range expands from a low of .91 to 4.53 of baseline earnings-a variation of 3.62.
Those holding a Bachelor's Degree or higher have earnings that spread out more than those holding an Associate Degree or lower. The span between wage-earners with a Bachelor's Degree and those with a Professional Degree appears as a variation of 2.15.
Those with an Associate Degree or lower remain closer to one another in earnings. The span between those with an Associate Degree and those with an 8th-grade education or less appears as a variation of .93
Exploring at what age (on average) that Real Earnings peak indicates that different levels experience this peak at different times. Though a slim majority peaks between 40 and 54 years of age, this varies with educational attainment. Professionals and Doctorates hit their peaks between 60 and 64 years of age. Holders of Master's and Bachelor's Degrees hit their earning heights between 45 and 49, while holders of Associate Degrees peak between 50 and 54 or a bit earlier. Those with Certificates and High-School Degrees or GEDs hit their peak earnings between 45 and 54 years of age. Those with a 9th to 12th grade education appear to peak between 45 and 49 years of age. Finally, those employees with eight years or less of formal education peak between ages 40 and 44 and remain at that level until ages 55 to 59 before receding slightly.
Conclusion
Devoid of Consumer Price Inflation, many in the fields of Law and Economics appear to believe that wages increase only by the rate of inflation or less. However, it seems that this hypothesis may be weak. Studying the results of the American Community Survey leads us to question the flat Real-Earnings premise because, at lower levels of education, there appears to be at least a 15% to 27% Real Earnings increase even for those in our society with less than a High School education.
If we choose to apply this more rigorous approach to determining lost future earnings, we need to do further study into this more complex methodology. Each degree-level experiences differing pay-scales, levels of commitment, and knowledge bases. In specific court cases, we need to explore the nature of the individual human being whose livelihood has become more uncertain. Our hope is that by developing and implementing the method discussed above, both attorneys and economists will draw even closer to the essence of Humanistic Economics. By doing so, the lives and fortunes of many individuals may be improved exponentially.
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Dr. John F. Sase teaches Economics at Wayne State University and has practiced Forensic and Investigative Economics for twenty years. He earned a combined M.A. in Economics and an MBA at the University of Detroit, followed by a Ph.D. in Economics from Wayne State University. He is a graduate of the University of Detroit Jesuit High School (www.saseassociates.com).
Gerard J. Senick is a freelance writer, editor, and musician. He earned his degree in English at the University of Detroit and was a supervisory editor at Gale Research Company (now Cengage) for over twenty years. Currently, he edits books for publication (www.senick-editing.com).
Julie G. Sase is a copyeditor, parent coach, and empath. She earned her degree in English at Marygrove College and her graduate certificate in Parent Coaching from Seattle Pacific University. Ms. Sase coaches clients, writes articles, and edits copy (royaloakparentcoaching.com).
