Why are Lawyers So Expensive?

A nice explanation of why lawyers are so expensive in this article: http://www.quora.com/Why-are-lawyers-so-expensive-even-with-the-excess-supply-of-lawyers.

It lists several reasons, including:

  • “Sticky” wages
  • “Sticky” billing rates
  • Limited discounting
  • Obsession with prestige and rankings
  • Money is viewed as a proxy for prestige
  • Associate salaries are not an efficient, free market
  • The dot-com boom changed everything
  • Law firm overhead consists mostly of compensation
  • At large law firms, salaries and billing rates are the same across departments
  • In placement, law schools and students focus on the large, top-tier firms to the exclusion of most other opportunities
  • The middle is missing