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The amount of money lawyers make will depend on the area of law they practice; those working for large firms tend to earn more than public defenders.

Salaries will vary based on location and firm size; to get an idea of how much an entry-level lawyer might earn, see this chart.

Legal Specialization

Lawyers who specialize in specific areas of law typically make more than those who don’t specialize. This is particularly true for lawyers specializing in corporate and tax law issues as these usually require extensive research and analysis; but also applies to lawyers working in areas like pharmacology, sports law, intellectual property law or real estate law.

As you consider which area of law to pursue, it’s essential that you consider both your priorities and desired lifestyle. Animal law might not be suitable if your main priority is paying off student loans quickly or making an impactful difference rather than generating big earnings.

Before embarking on any legal specialization, it is crucial that you find out the salary range for that area of law. A great way of doing this is speaking with an experienced attorney; they will give an accurate estimation of how much money an entry-level lawyer could expect to make and beyond.

Size matters when it comes to salaries; generally speaking, smaller firms typically provide lower starting salaries than bigger ones. But this trend has recently begun to reverse itself – Janet Hutchinson of University of Richmond School of Law in Virginia reports that lawyers joining larger firms are seeing greater first-year salary increases compared to their counterparts working at smaller ones.

Keep the following in mind when considering becoming a lawyer: your location matters greatly in terms of salary; this varies widely between regions and even within cities or states due to cost-of-living considerations and average lawyer salaries in particular fields.

Firm Size

Firm size has an enormous effect on how much lawyers make. Larger firms often pay higher salaries; however, they also incur greater overhead expenses like space rent/utilities costs, technology maintenance fees and support staff compensation costs. Billable hours an attorney works each month are also an important determinant of salary; however, hours billed do not account for client meetings, phone calls or email writing that comprise part of an attorney’s job duties.

Other than firm size, the type of law an attorney practices also has an enormous effect on how much they make. Lawyers specializing in specific fields may make significantly more, even with equal billable hours per month; intellectual property attorneys typically earn $149,349 according to PayScale; attorneys specializing in medical malpractice may earn even more, particularly if they successfully win high-value cases.

Location can have a direct influence on an attorney’s salary. Certain regions pay higher starting salaries for corporate lawyers; Above the Law reports that senior associates at top New York City firms could start with starting salaries of approximately $174,000 while those working at midsize firms might see around $125.000 per year as starting pay.

Recruitment expenses can have an enormous impact on an attorney’s salary at smaller firms. A recent report by Thomson Reuters noted that solo and small firm attorneys spend 55% of their workday practicing law while overseeing billing, bookkeeping and client relationships – costs which quickly add up in an environment with already high salaries being paid out.

While most lawyers work in private practice, a growing number have made the switch to corporate roles. Though these may offer lower salaries than private practice positions, these jobs typically provide attractive benefits and advancement opportunities that could allow a lawyer to advance more quickly – the average annual income for corporate lawyers ranges between $100,000-300k depending on industry, location and firm size.

Geographic Location

Large, prestigious firms located in major cities generally earn more than smaller or solo practices in those cities, and those practicing specialized areas such as corporate law or intellectual property typically outstrip those practicing less-popular fields. Government employees or judicial clerks tend to make considerably less than their private practice counterparts.

At large city law firms with established reputations, new lawyers starting their careers off with salaries in the mid-to-high seven figures can be found; however, these are far from common. Instead, first year associates generally follow what is known as a double mode distribution: most fall somewhere in the center while those at either extreme make substantially more or less than average.

Lawyers starting out in big city law firms typically start at around $125,000 on average; if they attended and graduated from a top tier law school with top honors, however, their salaries could be five or ten times greater.

Other influences include cost of living and industry size in your region that require legal expertise. Coastal regions tend to offer higher salaries due to higher living expenses while inland regions often provide less compensation.

An important factor that determines a lawyer’s long-term earning potential is their ability to forge and nurture relationships with clients, particularly healthcare or intellectual property law attorneys who rely heavily on referral business for additional annual earnings.

One important factor influencing a lawyer’s overall earning potential is their ability to keep pace with inflation. According to research by Deborah Merritt of Ohio State University Moritz College of Law, salaries at 25th, 50th, and 75th percentiles have failed to keep pace with inflation; as a result they have suffered real wage erosion over time.

Experience

A lawyer’s salary varies based on various factors, including legal specialty, employer size and geographic location. Experience is by far the biggest determinant in their earnings potential; those with more years under their belt have gained insight into handling various cases with greater ease while becoming adept in understanding legal intricacies more fully. Furthermore, more experience equals higher earnings.

An experienced medical malpractice attorney could make more than their general practice counterparts, while corporate finance specialists can often command higher salaries than newer lawyers in private practice.

Experience is also an important factor when it comes to becoming a partner at one’s firm, with most large firms following the Cravath scale system which pays associates at each firm according to how long they’ve been out of law school and pays associates at the top of it over $200,000 annually – though this figure can vary depending on market factors.

As mentioned above, a lawyer’s earning power can also depend on their state’s salary scale. States with high employment levels of attorneys often boast the highest pay scales such as California, New York and Florida while states with fewer lawyers typically receive lower wages.

Specialty lawyers can increase their earning potential. According to PayScale, intellectual property specialists can expect an expected yearly income of $149,349. Other specialties which could boost earning potential include tax and real estate law specialists.

Though lawyer salaries vary significantly, most lawyers tend to be well paid. According to the Bureau of Labor Statistics (BLS), their median annual wage stands at $126,930 which is significantly higher than most professions’ median wages such as doctors or accountants. Furthermore, lawyers often receive bonuses or profit sharing that help cover family obligations or unexpected expenses.