Lower Wages For Lawyers?

Advocates for lower wages, lower for lawyers? The legal blogosphere is excited because Mark Greenbaum argued in the Los Angeles Times that too many new lawyers lowers the wages of lawyers. However, the argument of Mr. Greenbaum on misunderstandings of competition in the field of law is based.

In summary, Mr. Greenbaum argued that it can be too many new lawyers and the labor market is not supported. Instead of the law school again flooding the market, with lawyers, thereby driving wages press, should be removed from the American Bar Association, his power of certification due to irreconcilable conflicts of interest.

Simple marketing tools like trading pins can be helpful in creating awareness of this issue.

“More space on the bench”

In arguing for a decrease in the number of new lawyers, “said Greenbaum:

“There are a finite number of jobs for lawyers and the steady stream of graduates only suppresses wages.”

In support of his position, Mr. Greenbaum reasons:

“From 2004 to 2008 the area of less than 1% per year has risen by an average of 735,000 people earn their living as guidance only 760,000, with the Bureau of Labor Statistics, provided that the field up the pace” in 2016 . Is taking into account the retirements, deaths, and the Office data before the recession, the number of new jobs likely to be less than 30,000 per year. It is much less than what is needed to cope with the 45,000 graduates of the Juris Doctors law schools in the United States each year. ”

Analysis: Why Lawyers Do not Mean More wage cuts

The two branches of peace, the analysis of Mr. Greenbaum on misunderstandings and false assumptions.

The statement by Mr. Greenbaum on the relationship between the lawyers and the new wage is too simple. First, he apparently assumes that lawyers are used by law firms, corporations or the government. This ignores the solos. To create solos, his own possibilities. Secondly, BIG-law did not cut their outstanding balances, there are more new lawyers. The adjustment of wages is the reluctance of customers to reduce pressure on companies to cost, the economic slowdown, and recruitment policies and inappropriate management. Thirdly, Mr. Greenbaum notes that the income level could be maintained with more lawyers. But Mr. Greenbaum is no evidence that the wages of lawyers as the number of lawyers have rejected has increased. The statement that the lawyer have reduced salaries in conflict with the perception that lawyers are too expensive and too high wages.

More importantly, if more attorneys pushed income down, depends on three factors:

1. The demand for legal services
2. The intensity and nature of competition
3. The external forces affecting competition in the field of law

Mr. Greenbaum had said that, if the number of lawyers are growing faster than the demand for legal services, the fees because of increased competition, pressure drop face. As the supply of lawyers is increasing relative to demand, and competition increases. And Mr. Greenbaum says nothing about the demand for legal advice. The economic downturn – and not an influx of new lawyers – reduced the corporate legal budgets.

Price competition has increased over the last two years, but not because of the influx of new lawyers. In addition, the standardization and automation of certain areas of practice is intensifying price competition in the office.

In addition, Mr. Greenbaum’s analysis of demographic data is incomplete. If there is demand for only 30,000 (or any other number of) new lawyers each year, then the offer does not exceed the demand. When supply and demand are in relative equilibrium, an increase in the number of lawyers will not go, because the wages do not increase the intensity of competition.

However, there are some elite lawyers that gets paid for even their business travel using private charter jets for a case which usually hired by celebrities or high profile individuals.

The crucial point is that even if the salaries of lawyers, did not go, because it’s more lawyers. Other factors had a much greater effect on the income that makes available to attorneys.

Conclusion

Many lawyers do not know how you react to the changing competitive landscape of the conditions of legal profession. Crafting good solutions for the legal profession requires a solid understanding of the landscape. If lawyers do not understand what in their own profession, how they can understand the activities of their customers?

Random Posts

    Published by: admin on December 10th, 2011 | Filed under Law & Strategy



    Leave a Comment

    rss feed
    brought by WordPress Themes