Multiple Regression Analysis
How do we examine compensation data for the presence or absence of discrimination?
The first thought that may come to mind is to look at average pay rates for different groups. Averages are easy to calculate and interpret, and most people have a basic intuitive understanding of what an average is and what it represents.
A comparison of simple average rates of pay, however, does not—and in fact cannot—account for legitimate, nondiscriminatory factors that employers consider when setting hourly rates of pay. Because of this, a simple comparison of average compensation, in most cases, cannot provide an appropriate assessment ...
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