Salary equity at SAFECORP
You have been asked to provide statistical expertise in a lawsuit alleging discrimination against minority employees at Safecorp, a major banking institution. One of the issues at stake is salary equity. Your clients, the plaintiffs’ lawyers, have supplied a random sample of records from 474 employees (dataset = jobdata). The records include the following information:
Variable name
What the variable measures
Type of measure id Employee id #
Interval/ratio
educ
# years of education
Ordinal
jobcat
Job category
1 = clerical
2 = custodial
3 = managerial
Nominal
salary
Current annual salary, $
Interval/ratio
minority
Minority race/ethnicity
0 = no
1 = yes
Nominal
female
Female
0 = no
1 = yes
Nominal
yearlap
# years elapsed since hire
Interval/ratio
clerical
Clerical worker
0 = no
1 = yes
Nominal
custo
Custodial worker
0 = no
1 = yes
Nominal
manager
Managerial worker
0 = no
1 = yes
Nominal
Your task is to address the following questions in a brief memo to the legal team:
Are salaries for minority employees lower than those for majority employees?
Do minority and majority employees differ with respect to characteristics that are associated with salary?
Do differences in characteristics of minority and majority employees “explain” the lower salaries of minority employees?
Typically, memos of this sort are organized as follows:
1. Introduction. What are you going to talk about? Why are these issues important? (Note that because this is a statistics class rather than a policy course, this will be just one short paragraph.)
2. Methods: What is your data source and approach for addressing these issues?
3. Findings: What did you find? (This section will be the bulk of your memo).
4. Conclusions: How do your findings address the issues that you outlined in the introduction? What do you conclude? Briefly, what are the limitations of your analysis?
The memo should be 2-3 pages. You will submit two