Question
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
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 = safecorp_data.dta).For each sample employee, you have this information:
Employee's current annual salary (in dollars) (annual_sal)
Number of years working for Safecorp (yr_work)
Employee's position at Safecorp (position)
Employee's minority status (minority)
Employee's sex (sex)
Highest grade completed in formal education (highest)
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?
- What characteristics are associated with salary?
- Do minority and majority employees differ with respect to the characteristics that are associated with salary?
- Do differences in characteristics of minority and majority employees "explain" the lower salaries of minority employees?
My question is: What STATA functions should I be using to support my conclusions?
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