Regression Models of Equal Pay

Since 1975 multiple regression analysis has been the preferred statistical technique for identifying compensation discrimination based on protected class status.1 This technique is used by plaintiffs and defendants to demonstrate discrimination (or lack thereof), and was approved by the U.S. Supreme Court for analysis of pay discrimination in 1986.2

Traditional models for examining equal pay generally fall into the two forms suggested in the Harvard Law Review.3

  1. The classic model: Regressing the dependent variable (some measure of compensation) on legitimate, nondiscriminatory factors and a dummy variable for ...

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