stores and building material suppliers also had a large proportion earning $2 or more, although most workers were paid on an hourly basis.

The diversity of occupational requirements among the lines of retail businesses affected the distributions of employee earnings. For example, more than a fourth of the drugstore employees earned less than $1, and more than two-fifths earned less than $1.05 an hour. On the other hand, a sixth of the workers earned at least $2, and a tenth earned $2.50 or more. The higher earnings reflect, at least in part, the numerical importance of pharmacists in drugstores. By contrast, all but 2 percent of the workers in limited price variety stores earned less than $2 an hour; in this line, many jobs require little or no experience or training. Motor vehicle dealers, on the other hand, employ large numbers of skilled mechanics and commission-paid salesmen who require experience and training. More than two-fifths of these workers earned $2 or more an hour.

Earnings of men were substantially higher than those of women, the difference ranging from 14 cents an hour in gasoline service stations to 65 cents in drugstores and department stores. (See table 4.) Generally, those lines of business which employed larger proportions of men also had higher levels of earnings. The major exception was gasoline service stations, with men accounting for 96 percent of the work force. Their relatively low wages are probably attribut

able to the large number of men in jobs which require few skills and little or no experience.

Higher earnings were paid to employees in metropolitan than in nonmetropolitan areas and to employees working in retail enterprises with annual sales of at least $1 million than in those with a smaller volume of sales. The proportions of workers, employed in metropolitan areas or in enterprises with annual sales of $1 million or more did not, however, appear to influence the relative earnings position of the various lines of retail business. For example, department stores, with 85 percent of their employees in metropolitan areas and 95 percent in $1 million enterprises, ranked seventh in average hourly earnings; motor vehicle dealers, with 60 percent in metropolitan areas and 56 percent in $1 million enterprises, ranked first; and limited price variety stores, with 67 percent in metropolitan areas and 86 percent in $1 million enterprises, ranked last.

Weekly Hours and Earnings

Part-time employment (less than 35 hours a week) is common in retail trade, as is also work in excess of 40 hours a week (table 5). At least a fourth of the employees in 8 of the 12 retail business groups shown separately worked less than 35 hours a week, and more than a tenth of the workers in drug, variety, and shoe stores worked less than 15 hours a week. In 9 of the 12

business groups, at least a third of the work force worked more than 40 hours a week, and in men's and boys' clothing stores, furniture stores, household appliance stores, building materials and hardware stores, at motor vehicle dealers, and in gasoline service stations, a third or more of the employees worked in excess of 44 hours.

Average weekly earnings, exclusive of premium pay for overtime, ranged from $35.32 in variety stores to $91.90 at motor vehicle dealers. Limited price variety stores employees working less than 15 hours a week averaged $8.32 and those working 40 hours averaged $44.84 a week. Employees of motor vehicle dealers working similar hours averaged $14.43 and $99.75, respectively. In most of the retail groups, employees working the most hours during the week, 49 or more, had the highest average weekly earnings. In two groups,

• Employee Earnings in Retail Trade in October 1966 (BLS Bulletin 1220, 1957).

At least three factors prevented accurate analysis of employment changes: (1) Hawaii and Alaska were admitted to statehood during the 5-year period between surveys and were included in the 1961 survey; (2) a revision in the 1957 edition of the Standard Industrial Classification Manual transferred fluid milk dealers from retail trade to manufacturing; (3) seasonally, October employment in retail trade is generally higher than June.

however, the highest weekly earnings were recorded by employees working 44 hours, and in two others little difference existed between employees working 40 hours and those working more than 40 hours a week.

Wage Changes, October 1956-June 1961

The Bureau's 1956 wage survey of retail trade permits an examination of the changes in wage levels and distributions of workers between October 1956 and June 1961. Nonsupervisory employment in June 1961 exceeded the October 1956 estimate by 62,800. Average straight-time hourly earnings for nonsupervisory employees in the Nation's retail trade industry rose 21 cents, from $1.41 in October 1956, an average annual increase of approximately 4 cents an hour. The accompanying chart indicates that employees at all pay levels were generally affected by the upward movement of wages, although changes at the lower levels were more pronounced.

The 33-cent-an-hour increase in average earnings in the West between the two surveys exceeded both absolutely and relatively those in the other regions. As shown in the following

In metropolitan areas of the United States," 1956 average earnings of $1.50 advanced 23 cents, or 15 percent; in nonmetropolitan areas, average earnings of $1.22 increased 17 cents, or 14 percent. While the absolute pay differential between metropolitan and nonmetropolitan areas increased from 28 to 34 cents an hour, the relative differential changed little, from 23 to 24 percent during the 5-year period.

Men's earnings in 1961 averaged 22 cents (14 percent) an hour higher than the $1.58 average recorded in 1956; similarly, women's earnings increased 21 cents above the $1.11 average recorded in the earlier survey. The 19-percent increase for women improved their wage position relative to men, the percentage differential declining from 42 percent in 1956 to 36 percent in 1961.

Increases in average hourly earnings among the selected lines of business ranged from 8 cents an hour in gasoline service stations to 32 cents an hour at motor vehicle dealers. Employees in limited price variety stores, grocery stores, building materials, and motor vehicle dealers improved their earnings position by at least 4 percentage points relative to the overall retail trade average. On the other hand, employees in gasoline service stations, men's clothing stores, and household appliance stores lost earnings position relative to the average for retail trade as a whole, as indicated by the following pay relationships for both survey years:

Under $0.75

Under $1.00

Under $1.25

Under $1.50

Under $2.00

NORTHEAST

Under $0.75

Under $1.00

Under $1.25

Under $1.50

Under $2.00

SOUTH

Under $0.75

Under $1.00

Under $1.25

Under $1.50

1956

Line of retail business

Index of average hourly earnings [National retail trade average =100]

June October 1961

Under $2.00

The number of Standard Metropolitan Statistical Areas, as defined by the Bureau of the Budget, increased as a result of population growth between the survey periods.

The proportion of employees working over 40 hours a week in retail trade declined from 45 percent in October 1956 to 40 percent in June 1961. The proportion working less than 35 hours remained about the same, while those working 35 and including 40 hours increased from 30 to 34 percent. Among the major retail groups, the most pronounced modifications in work schedules oecurred in general merchandise and food. The proportions of employees working over 40 hours

decreased from 25 to 19 percent in the former group, and from 42 to 33 percent in the latter group between the 1956 and 1961 surveys. Slight increases occurred in the proportion of employees working less than 35 hours a week, and the proportions of employees working 35 to 40 hours increased from 46 to 50 percent in general merchandise and from 26 to 32 percent in food.

-HERBERT SCHAFFER Division of Wages and Industrial Relations

Presidential Committee Report on Fiscal and Monetary Policy

EDITOR'S NOTE.-The Advisory Committee on Labor-Management Policy1 submitted the following recommendations for fiscal and monetary policy to the President on November 19, 1962. Other Committee reports on automation, free collective bargaining, and competition in world markets were presented in the February, July, and November 1962 issues, respectively.

THE UNITED STATES can and must improve its recent record of economic progress. We must achieve and maintain fuller utilization of manpower, higher industrial operating rates, and a more rapid rate of economic growth, while maintaining reasonable price stability. Economic policy should be directed at strengthening the expansionary powers of the economy. Our objective should be twofold: In the short run, we must increase total demand for both consumption and investment; in the long run, we must achieve. a more rapid rate of growth of our productivity capacity.

Readily available credit is needed to permit and promote economic expansion. In view of the balance of payments situation and the present relative ease of credit markets, monetary policy cannot shoulder a much larger share of the responsibility for stimulating economic activity in the near future. The main tool for promoting our economic objectives in 1963 should be a prompt and significant reduction in income tax rates. A majority of the Committee favors a reduction of about $10 billion early in 1963. Some members, however, would prefer to have specific

legislation enacted which would provide that any such reduction be spaced over a 2- to 3-year period. A few favor limiting tax reduction to $4 to $5 billion during the next year.

Tax rates should be reduced on both individual and corporate incomes. In dollar amount, the bulk of the tax reduction should take the form of lowering individual income tax rates. The remainder should be achieved through reducing the "emergency" corporate tax rate of 52 percent. Thorough review and revision of the tax system should be undertaken promptly, but this should not be permitted to postpone action on the urgently needed reduction in tax rates.

It is important to note that a reduction in tax rates will not entail an equivalent decline in collections. Indeed, over the longer run, it may well generate increased tax revenues. But it should be recognized that in the near future the significant tax reduction we recommend is likely to mean appreciable deficits in the Federal administrative budget.

The built-in character of most Federal outlays militates against either a rapid expansion or absolute cutback in expenditures for purposes of economic policy. Some Committee members feel, however, that expanding Federal expenditure programs can make a contribution to stimulating the economy. Other members feel that special efforts should be made to hold down Federal expenditures. Federal expenditures, at whatever aggregate levels economic policies might prescribe, should always be subject to careful scrutiny and efficient administration.

1 The members of the Committee and their affiliations are listed on p. 139 of the February 1962 issue of the Review. W. Willard Wirtz has replaced Arthur J. Goldberg as Secretary of Labor and ex officio member.

Strikes of Government

Employees, 1942-61

THE STRIKE of New York City public school teachers in April 1962, which was ended by injunction after 1 day, momentarily reminded the Nation that public employees can and do strike. Government strikes have not been a national problem; indeed, despite the tremendous increase in government employment over the past two decades, the number of stoppages,' never a significant figure, has been declining. During the 1958-61 period, lost time due to strikes accounted for 11 out of every 1 million days of public employment. The corresponding ratio for employment in private industry was 2,850 for every million days worked.

It is unlawful for employees of the Federal Government, including wholly owned Government corporations, to participate in any strike. The Bureau of Labor Statistics has no record of any defiance of the law's prohibition that would fall within its definition of a strike. Several States, including New York, have enacted no-strike laws applying to some or all public employees, but the usefulness and enforcibility of such laws are often questioned. With or without legislation, public intolerance of government strikes is everywhere a powerful factor to

be reckoned with. Yet, while legal bans and public opinion may deter strikes, shorten them, make them suicidal ventures for any sponsoring organization, and possibly result in the discharge of all strikers, they cannot entirely prevent strikes in a free society.

This report presents available statistics on government strikes for the years 1942 through 1961. The record of such strikes, however, is not complete: it was not feasible to reconstruct the data for the years prior to 1958 in full conformity with the classification of "government" used since that year. For the period 1947-61,

For its work stoppage statistics, the Bureau of Labor Statistics counts only stoppages lasting 1 full shift or day or longer and involving at least 6 workers.

* Average public employment in 1961 was 2,279,000 in Federal Government and 6,548,000 in State and local governments.

For a study of government strikes prior to 1940, see David Ziskind, One Thousand Strikes of Government Employees (New York, Columbis University Press, 1940).

The Bureau of Labor Statistics has published data on strikes in government in its annual reports since 1942. Prior to that year, they had been included in a miscellaneous category-other nonmanufacturing industries. From 1942 through 1957, "government," as used in work stoppage statistics, was confined to administration, protection, and sanitation services. Following the Federal Government's Standard Industrial Classification Manual, 1942 edition, establishments owned by the government were classified in their appropriate industry; publicly owned transportation and other utilities were included in transportation, communication, and other public utilities; public schools and libraries were included in education services. Beginning with strikes in 1958, the Bureau adopted the more detailed classification of "government" provided in the 1957 edition of the Standard Industrial Classification Manual, and all government stoppages, including municipally operated utilities, transportation, and publicly owned schools, were brought together under one classification. The Bureau was able to reconstruct the record of strikes in publicly owned utilities, transporation, and schools back to 1947, but a complete restoration to conform to current definitions was not attempted.