Designing an Audit for Pay Equity
Imagine you are a labor economist hired by a large company to determine if gender-based pay discrimination exists within its workforce. The company provides you with complete, anonymized data for all employees, including their salary, gender, years of experience, specific job title, performance review scores for the last three years, and highest level of education completed. Describe the step-by-step statistical analysis you would conduct to isolate the effect of gender on pay, separate from the other legitimate factors. What specific outcome in your results would suggest the presence of pay discrimination?
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Designing an Audit for Pay Equity
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