Statistical analysis for determining pay discrimination

The purpose of this article is to explore the historical differences in wages between different groups (women, minorities, older employees, and other distinct groups) and to analyse whether wage gaps are due to discrimination. Statistical data on wages, population, and education were accumulated from the US Department of Education, the US Department of Labor, and the US Census Bureau. Other reference materials were used to examine various theories for pay differences. Specifically, the gender wage gap is partially due to women’s domestic responsibilities and occupational sex‐typing. Race differences were found to have a correlation to education attainment. However, the wage gaps cannot completely be explained by other factors, indicating that negative stereotypes and discrimination do exist. The existence of discrimination is further supported by the growing number of pay discrimination lawsuits. In 2002, over $52 million was paid out by employers found guilty of employment discrimination in cases filed by the US Equal Employment Opportunity Commission. This article will define pay discrimination and examine ways to evaluate whether differences in pay are attributable to discrimination. Historical inequalities between men and women’s pay will be presented and evaluated in detail. Race differences between White, African‐American, Hispanic and Asian employees will be thoroughly addressed. Other less common forms of pay discrimination will also be covered. The analysis will reveal the non‐discriminatory as well as discriminatory reasons for differences in pay among individuals with similar aptitude and provide suggestions for improving the situation.