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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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