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4 Survey Design and Statistical Methodology
Pages 59-76

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From page 59...
... confronts several key decisions in the realm of survey design and statistical methodology. The decisions involve four closely associated issues: collectability, quality (defined as fitness for use)
From page 60...
... Design a New Collection Instrument A second option would be to design a new and, one hopes, a more streamlined collection instrument that would collect both employment and earnings information. The design of such a new instrument could be informed by the current effort by OFCCP to develop a collection instrument to replace the defunct Equal Opportunity Pilot Survey discussed in Chapter 2.
From page 61...
... It is important in this context to consider the need of the EEOC for earnings information. The major use of the EEO compensation data would be to aid enforcement of pay discrimination statutes in two ways: targeting enforcement actions and carrying out enforcement actions against an employer that has been targeted.
From page 62...
... Still more complex models might include more detailed occupational or job categories and more elaborate controls for previous experience and qualifications. There are a large number of potential control variables that could be included in such regression models, and, especially for employers with small numbers of employees, there would be benefits from keeping the number of covariates in such models relatively small.
From page 63...
... The regression model we use is a general linear model of the form: yi = b0 + d i b1 + x i b2 + ei Here, yi is the logarithm of the wage measure for individual i, di is the vector of design variables that indicate the EEO-1 categories occupied by individual i, xi is a vector of control variables, ei is the statistical error, b0 is the intercept, b1 is the vector of EEO-1 log wage differentials from a specified reference group (usually white, non-Hispanic males) , b2 is the vector of effects associated with the control variables, and i = 1,...,N, where N is the total number of employees in the analysis.1 For an agency such as EEOC or OFCCP, the results from this kind of regression analysis that will be of greatest concern will be the estimates of the coefficients for gender and race/ethnicity: that is, the betas, because the estimates of these coefficients indicate the extent (if any)
From page 64...
... than a poll of 100 people; similarly, regression estimates of sex or race/ethnicity pay differences that are based on many data points will have greater power than estimates based on only a few data points. Finally, note that the number of data points in an analysis of a particular employer will depend on the size of the employer's work force: the greater the number of employees, the greater the number of data points, and the greater the power of the statistical model used in screening employers.
From page 65...
... Because the CPS data are more heterogeneous than microdata from a single employer, they permit estimation of models that strongly resemble the ones that might be used by EEOC to screen EEO-1 reports that included wage data developed according to either of the two pilots recommended in this report (see Chapter 6)
From page 66...
... All power analysis was conducted in SAS version 9.3 PROC GLMPOWER. The design matrices, estimated subgroup means, and regression summary statistics used in the power analysis were computed from the March CPS data in the statistical summaries shown in all three of our models.
From page 67...
... 67 SOURCE: Analysis by panel using Current Population Survey data. Figure 4-1 Broadside
From page 68...
... . SOURCE: Analysis by panel using Current Population Survey data.
From page 69...
... . SOURCE: Analysis by panel using Current Population Survey data.
From page 70...
... . SOURCE: Analysis by panel using Current Population Survey data.
From page 71...
... Options for Minimizing Response Burden To the extent that the current burdens data are representative, the addition of earnings data to the existing EEOC data collection forms that do not now collect the data, in much the same manner in which earnings data are collected in the EEO-4 form, could be expected to nearly double the current burden on employers. In the case of the largest collection, the current average of 3.5 hours per EE0-1 form might increase to somewhere near the average of 6.6 hours now reported for the EE0-4 form.
From page 72...
... 72 TABLE 4-4   Estimated Cost and Burden of EEOC Data Collections Estimated Percent Electronic Form Frequency Respondents Responses Burden Hours Estimated Cost Reported EEO-1 Annual 45,000 170,000 599,000 $11,400,000 80 EEO-3 Biannual 1,399 1,399 2,098 85,000 79 EEO-4 Biannual 6,018 6,018 40,000 700,000 76 EEO-5 Biannual 1,135 1,135 10,000 190,000 58 SOURCE: Data from EEOC Form 83-I submissions to OMB.
From page 73...
... Rotating Sample It might be possible to continue to collect data annually but from only a part of the current reporting population and to permit firms with certain characteristics, such as not meeting a threshold size or in a selected industry group, to report less frequently. The selection of annual versus biannual reporters could, for example, be based on an analysis by EEOC of the probability of discrimination based, in turn, on the experience of the agency with enforcement.
From page 74...
... Today, larger companies are more able to comply with a potential requirement for compensation data by gender, race, and national origin because they can gather compensation information from automated payroll systems and demographic data from automated human resource systems. The panel reviewed the state of automation of company payroll systems from the perspective of three service providers -- a large payroll-providing service firm, a firm that specializes in the emerging software-as-a-service (SaaS)
From page 75...
... One product for the clients who use human resource services and who have an OFCCP or EEOC requirement is to produce EEO-1 reports. Growth of Software-as-a-Service Applications The workshop presentation by Karen Minicozzi of Workday, Inc., representing an enterprise software solution, highlighted the unified human capital management solutions offered by the enterprise software and services provider, Workday, Inc.
From page 76...
... Analysis of Salary and Related Data for Pay Equity Purposes In order to ensure that their firms are in compliance with the Equal Pay Act, Title VII, and Executive Order 11246 provisions, many employers use firms that perform compensation analysis and, in many cases, actually prepare automated Affirmative Action Plans. Other firms use software to support this analysis internally.


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