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New York Law School

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Thursday, August 27, 2009

New law grads - the rich get richer and the poor get poorer

The National Association for Law Placement ("NALP") recently published its annual report on salary distribution for the graduating law school class of 2008 and the results are not pretty.  The report shows a dramatic and widening gap between the graduating "haves" and "have nots."

08_bimodal_curvey_for_web

In the words of the NALP:

The salary distribution for the Class of 2008 presents the most dramatic bimodal distribution yet of starting salaries for recent graduates from law school. The sharp spike on the right reflects the fact that in 2008 the prevailing starting salary at large law firms was nearly uniformly $160,000. By contrast, the starting salary distribution for the class of 2007, while reflecting a spike at $160,000, also had an elbow that extended out over $145,000. (Click here to see the salary distributions for the Class of 2007 and the class of 2006.) Prior to 2000, starting salaries for new law school graduates were distributed along a more recognizable bell-shaped curve. (Click here for an article that traces the development of the bimodal distribution of starting salaries for American law school graduates.) Since that time, the peak on the right has marched steadily to the right while the peak on the left has remained more or less stationary. The new reality is that very few law school graduates actually make either the median or mean starting salaries, and so it is neither helpful nor accurate to describe starting lawyer salaries using those modalities. (For the Class of 2008, the median starting salary, the red line on this graph, was about $72,000 and the mean starting salary was about $92,000.) It is important for anyone considering a legal education to understand that half of all starting lawyer salaries are less than $72,000 and in fact 42% of them are between only $40,000 and $65,000. By contrast, 23% of all salaries reported were $160,000.  Of course, based on recent developments in the marketplace, for the classes of 2009 and beyond the sharp spike over $160,000 is likely to soften and fall back to the left, and we may even see some flattening of this distribution curve over time.

Keep in mind that these figures are more than a year old, reflecting the stats for the class that graduated more than 12 months before the job market completely tanked.  The picture will undoubtedly look a whole lot worse next summer when the salary distribution for the class of 2009 is published.

(jbl)

http://lawprofessors.typepad.com/adjunctprofs/2009/08/new-law-grads-the-rich-get-richer-and-the-poor-get-poorer.html

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