World Bank

[EE570]

Oh, I think that jr. Ibankers do make 100K plus but look at the hrs they are putting in (I would expect to make 100+ if I were working those hrs) and living in NYC or Chicago is not cheap.

[sting54911]

Just to keep everyone grounded, a TA typically makes and lives on somewhere between 12k and 20k a year. And most people in this forum are phd students or wannabes.

I think World Bank was trying to say that they are competative with Academia, and in fact are a little higher than typical Assist. Prof salaries.

[EE570]

Sting your interpretation sounds pretty solid.

[elhuevon]

Originally Posted by dyiwang

Apologies if it sounded conceited. That was not my intention at all. Just curious on how a world renown organization define "competitive." I'm actually quite interested in a job at the world bank (my mom apparently has a very high opinion of them and I as a mom's boy would love to share her opinion). But then again, $100K per year pre-tax is considered working class no? I do consider something between $300K-$500 relatively high for kids our age (22-26). Cheers!



Thanks Macro30! $75-$85K per year ain't bad. Especially if you live in some developing country and have little obligations. I heard a rumor that you don't have to pay tax if you work at the world bank? Can you confirm that as well? Thx again!

I hope you're not planning to do much public finance or labor research

Average per capita income in the US:
$42,000
http://cia.gov/cia/publications/factbook/geos/us.html
That figure includes workers and non-workers, but it is a straight average (and then adjusted for PPP).

Better measure of how most folks are doing is the median income numbers. The census and BLS folks do a real good job putting these together. If we look at the richest state (Connecticut), then we see that the average family with only 1 full time worker takes in about $52,500. For a 2 worker family, the number is $86,400. Those numbers are a good deal higher than even other wealthy states with a high COL (California, Massachusetts, NY, NJ).

On the flip side, the average 1 earner family in Arkansas takes in $28,949 and a 2 earner family takes in $53,474.
http://www.census.gov/hhes/www/incom...sandstate.html

Out of 9,145 households surveyed headed by 25-29 year olds, only 790 (8.6%) had a HOUSEHOLD INCOME higher than $100,000. And most of those families include two income sources.
http://www.census.gov/hhes/www/income/incomestats.html

There's lots more fun data to be had out there, but how about a bit more general info:
1. The average salary for a graduate of Harvard Business School was $116,730. $117,456 at Stanford. This is the skinny, skinny end of the tail. The upper 1% for their age bracket.
http://www.usnews.com/usnews/edu/gra...rank_brief.php
2. At most of the top MBA programs, the average age (AT ENTRY) is 26 years old.
3. Associates in investment banking are not entry-level workers. They have either completed 2 years (about 8000 hours of work!) as an analyst or graduated from a 2-year MBA program.
4. At the types of salary levels we're talking, taxes will easily take out a 30% chunk of your salary. This means that $100K pre-tax at the WB + a working wife (making say $50K pre-tax) would put you in the upper 2% or so of all households in the U.S. Definitely not "working class."


Bottom line: anyone that's 26 years old and pulling in $500K is a freaking superstar. Top junior trader at a major hedge fund. Rapid riser to VP at a top M&A group in Goldman Sachs (this one is almost not possible before age 28 or so). Major league baseball/football/basketball player. Recording artist with gold/platinum records. Hollywood actor with top billing. Entrepreneur growing an 8 figure business or exiting a successful startup.


Sorry if I went overboard with the stats, but I just wanted to give you an idea how far off that idea really was...

[JAlfredPrufrock]

those stats are interesting. Coming from a family whose combined incom was less that 30K i can't even imagine making 500K a year. I didn't know now to respond when 100K was working class?!? even with 100K i wouldn't know what to do with myself. Thanks for adding a little percpective.

[dyiwang]

Originally Posted by elhuevon

I hope you're not planning to do much public finance or labor research

Average per capita income in the US:
$42,000
http://cia.gov/cia/publications/factbook/geos/us.html
That figure includes workers and non-workers, but it is a straight average (and then adjusted for PPP).

Better measure of how most folks are doing is the median income numbers. The census and BLS folks do a real good job putting these together. If we look at the richest state (Connecticut), then we see that the average family with only 1 full time worker takes in about $52,500. For a 2 worker family, the number is $86,400. Those numbers are a good deal higher than even other wealthy states with a high COL (California, Massachusetts, NY, NJ).

On the flip side, the average 1 earner family in Arkansas takes in $28,949 and a 2 earner family takes in $53,474.
http://www.census.gov/hhes/www/incom...sandstate.html

Out of 9,145 households surveyed headed by 25-29 year olds, only 790 (8.6%) had a HOUSEHOLD INCOME higher than $100,000. And most of those families include two income sources.
http://www.census.gov/hhes/www/income/incomestats.html

There's lots more fun data to be had out there, but how about a bit more general info:
1. The average salary for a graduate of Harvard Business School was $116,730. $117,456 at Stanford. This is the skinny, skinny end of the tail. The upper 1% for their age bracket.
http://www.usnews.com/usnews/edu/gra...rank_brief.php
2. At most of the top MBA programs, the average age (AT ENTRY) is 26 years old.
3. Associates in investment banking are not entry-level workers. They have either completed 2 years (about 8000 hours of work!) as an analyst or graduated from a 2-year MBA program.
4. At the types of salary levels we're talking, taxes will easily take out a 30% chunk of your salary. This means that $100K pre-tax at the WB + a working wife (making say $50K pre-tax) would put you in the upper 2% or so of all households in the U.S. Definitely not "working class."


Bottom line: anyone that's 26 years old and pulling in $500K is a freaking superstar. Top junior trader at a major hedge fund. Rapid riser to VP at a top M&A group in Goldman Sachs (this one is almost not possible before age 28 or so). Major league baseball/football/basketball player. Recording artist with gold/platinum records. Hollywood actor with top billing. Entrepreneur growing an 8 figure business or exiting a successful startup.


Sorry if I went overboard with the stats, but I just wanted to give you an idea how far off that idea really was...

I really appreciate the numbers. I admit that I had little idea. But just one small caveat about the Harvard B-School number. That's the average starting salary, which doesn't include year end bonus. And in i-banking, it's often that your year end comp is more than your salary. Nonetheless, you have made your point clear and convincing and I now concede the point that my definition of "competitive salary" indeed sounds off relative to these data points (Please insert L. Sprewell's comments about feeding his kids here ). But I will focus on the bright side and agree with the observation above that most of us are or will be Econ Ph.Ds and we are probably not doing it to increase our near term earning potential (or arguably long term too).

Originally Posted by EE570

Oh, I think that jr. Ibankers do make 100K plus but look at the hrs they are putting in (I would expect to make 100+ if I were working those hrs) and living in NYC or Chicago is not cheap.

Yeah, my normal day is about 8-10, and I come in on at least one day on the weekend for a few hours. Clearly, I work longer days when we are busy, and it seems like we are always busy. Which is why I think I will be one of the happiest grad kids next year in sunny California where I can sleep all I want and go to the gym on a regular basis.

[werther]

if you're aiming to make 200-500k per year in your mid twenties why are you doing econ phd?

but coming from reading the threshold thread just now i undrestand your reasoning for going back to school... studying all you want without having to worry about making the payments it's really a pleasant situation

[Freethinker]

Originally Posted by dyiwang

Which is why I think I will be one of the happiest grad kids next year in sunny California where I can sleep all I want and go to the gym on a regular basis.

Is it possible to sleep all you want in grad school???

Seriously, I was expecting one of the hardest times in my life the coming year...

By the way, to add even more perspective on the WB/FMI wages, at my country most of my recently graduated friends have starting salaries of circa US$6000 pre-tax. Minimum wage is roughly $2500 yearly (if you have a formal-sector job).

[dyiwang]

Originally Posted by Freethinker

Is it possible to sleep all you want in grad school??

Seriously, I was expecting one of the hardest times in my life the coming year...

By the way, to add even more perspective on the WB/FMI wages, at my country most of my recently graduated friends have starting salaries of circa US$6000 pre-tax. Minimum wage is roughly $2500 yearly (if you have a formal-sector job).

I like to think of myself as a hardworking kid. So here is how I calculate. There are 24 hours in a day, and if I sleep 10 and spend 2 in the gym, another 2 or so for eating and socializing stuff, I still have 10 hours per day to go to classes and study, and that is a long time. And this is only for the weekdays, on the weekends I probably don't need to go to class and I can do more studying/socializing. And I can do problem sets outside. Maybe go to lake tahoe on a long weekend. I'm not saying that Ph.D econ will be a walk in the park for me and I plan to work hard. But it's all relative, and if you compare my forecast with my current schedule, I think I will appreciate the new life style a lot more.

[EDonomics]

Thanks for everyone's replies. I have one mroe question though...

What are some other companies that are similar to World Bank but not as competitive to get in, especially in the entry level position. Thanks.