Mean hourly wage varies by location

[Creflo]

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Does anyone know why the mean hourly and annual wage for podiatrists varies so much by location? For example, on the Bureau of Labor Statistics website, the hourly wage is $33.52 for Savannah, GA, and is $72.52 for the state of North Carolina. You could argue that it is based on the density of practicing podiatrists in a given area, but the numbers don't support this. For example, in the state of Arizona, which has a much higher number of podiatrists per 10,000 population vs. North Carolina, the hourly wage is $67.62, not much different than North Carolina. Any informed responses are appreciated.

 

[newres64]

Does anyone know why the mean hourly and annual wage for podiatrists varies so much by location? For example, on the Bureau of Labor Statistics website, the hourly wage is $33.52 for Savannah, GA, and is $72.52 for the state of North Carolina. You could argue that it is based on the density of practicing podiatrists in a given area, but the numbers don't support this. For example, in the state of Arizona, which has a much higher number of podiatrists per 10,000 population vs. North Carolina, the hourly wage is $67.62, not much different than North Carolina. Any informed responses are appreciated.

Its probably more of a statistical issue than anything else. When you have a smaller sample size you are more prone to outliers.

 

[rushrhees]

The 33 an hour is similar to certain resident wages based on a 40 hour work week, probably some outlier

 

[W19]

Why would a pod work for $33/hr anywhere in the country? That seems to be low for the type of job they do...

 

[PatchAdamsFan]

The error was going to BLS to find accurate podiatrist salaries.

 

[heybrother]

I would be curious to know the methodology used to generate the values. How is the data collected (or reported). We know what comes out - I'd like to know what goes in.

 

[newres64]

I would be curious to know the methodology used to generate the values. How is the data collected (or reported). We know what comes out - I'd like to know what goes in.

IIRC BLS mostly gets their data from tax returns. BLS counts only the income that podiatrists declare as "salary". The issue is that the overwhelming majority of podiatrists are private solo practioners which means they are also small business owners. Business income is generally taxed at a lower rate than personal income so many podiatrists try to write off as many expenses as possible on the business while paying themselves the lowest salary (Tax law requires you to pay yourself a "reasonable" salary in these instances). For example, a podiatrist's office brings in 200K/year in income (profit). The podiatrist delcares on his tax form he took only 90K/year salary while declaring the remaining 110K as either divident, owners equity, etc. BLS only counts the 90K number because that is how much he is declaring he is "making" as a podiatrist- the remainder is considered "business profit".

 

[torontopharm]

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