Evaluation of Compensation Data Collected Through the EEO-1 Form (2023) / Chapter Skim
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4 Do All Eligible Employers Receive and Respond to the Component 2 Instrument?
4 Do All Eligible Employers Receive and Respond to the Component 2 Instrument?
Pages 107-158
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From page 107... ...
When data collection resumed by court order, the response rate was slightly lower than the 82 percent target. A single extension brought the response rate above the target, to roughly 84 percent, and a second extension raised the rate to about 90 percent.
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From page 108... ...
Furthermore, coverage issues affect the utility of Component 2 data for EEOC charge-intake staff, due to poor coverage or incomplete data, as mentioned above. INTRODUCTION The EEO-1 Component 21 data collection intends to collect data from a census of employers that meet the eligibility criteria for filing.
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From page 109... ...
Data collection hit the target response rate by the first extended deadline. However, even with high response rates, there are substantial issues related to births, deaths, eligibility, and coverage across the two reporting years.
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From page 110... ...
Measurement differences in reporting size and industry further complicate comparisons between Component 2 data and national benchmarks. Nevertheless, the panel estimates that about two in five firms with 100 or more employees did not file Component 2 instruments, and about the same proportion of the establishments in these firms were not included in the Component 2 data collection -- a sizeable undercoverage rate.
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From page 111... ...
To facilitate reporting for both existing and new filers, a help desk and public website were established in June 2019, prior to the start of the July 2019 data collection. The website featured answers to frequently asked questions and reference materials to assist filers, and reminders were sent throughout the collection period to encourage prompt and complete responses (EEOC, 2020f)
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From page 112... ...
Because Component 2 data were collected under unusual circumstances, less editing was performed during and after submission than would be performed in a more routine data-collection effort. Errors due to measurement occur because of problems with construct validity, issues relating to instrument design or modes of data collection, or mistakes in editing responses during post-survey processing.
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From page 113... ...
Eligible firms that did not complete the Component 1 instrument were missing from the frame. These firms were eligible for inclusion if they met eligibility criteria for the Component 2 data collection.
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From page 114... ...
from the initial filing universe. These shifts in the eligible filing universe occur because EEOC updates the "master list" of eligible filers of Component 1 data only when a filer self-identifies as needing to submit a Component 1 instrument, or if a discrimination charge is filed but no Component 1 data are available for that employer (EEOC, 2021g)
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From page 115... ...
Unfortunately, because firms could self-select into the Component 2 data collection, evaluating response rates and variation in response rates is complicated. As noted above, almost 10,000 firms were added to the frame during data collection.
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From page 116... ...
By Firm Reporting Method In total, filings were collected from 64,100 firms in 2017 and 66,860 firms in 2018, yielding an overall response rate of 89.8 percent for 2017 and 90.7 percent for 2018. These high response rates are notable for a new data collection with a difficult response task.
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From page 117... ...
NOTE: No exclusion rules were applied. aAmerican Association for Public Opinion Research response rate calculation formula 2.
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From page 118... ...
Future Component 2 data collections would do well to consider whether and how PEO reports should be obtained. By Industry Response rates across all NAICS sectors exceeded 80 percent and thus exceeded the court-mandated response rates.
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From page 119... ...
FIGURE 4-1 Component 2 firm response rates by NAICS code, 2017 and 2018. SOURCE: Panel generated from Component 2 employer files for 2017 and 2018.
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120 FIGURE 4-2 Component 2 response rates by state, 2017 and 2018. SOURCE: Panel generated from Component 2 employer files for 2017 and 2018.
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From page 121... ...
Had data collection closed at this date, the target response rate would have been met for both years, but the number of filers would have been reduced by 4,000 firms in each year. The deadline was extended one final time, with data collection ending on February 19, 2020, yielding the final response rates of 89.8 percent for 2017 reports and 90.7 percent for 2018 reports.
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From page 122... ...
Type 6 reports can be filed by establishments with fewer than 50 employees, and these reports do not contain the necessary sex, race/ethnicity, occupation, pay-band, and hoursworked information collected by the Component 2 data collection (see Chapters 1 and 2)
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From page 123... ...
Six weeks after the initial deadline, information had been reported on an additional 111,760 establishments with at least one employee for 2017 and an additional 118,676 for 2018, yielding 93.5 and 94.4 percent of the final set of establishments for 2017 and 2018, respectively. At the end of data collection (February 2020)
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From page 124... ...
For instance, at the initial deadline, 47.2 percent of establishments reported in 2018 were federal contractors compared to 46.8 percent at the end of the data-collection period. The largest variation in filer characteristics across the data-collection period was for self-filers that were not part of the Component 1 data collection and thus self-identified as being eligible.
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From page 125... ...
TABLE 4-3 2017 Characteristics of Component 2 Establishments, by Completion Date (Count) Cumulative Within Listed Time Period 6 Weeks 8 Weeks 12 Weeks 16 Weeks 6 Weeks 8 Weeks 12 Weeks 16 Weeks Published Later Later Later Later Published Later Later Later Later Establishment Deadline (10/1/19– (11/12/19– (11/26/19– (12/24/19– Deadline (10/1/19– (11/12/19– (11/26/19– (12/24/19– Characteristics (9/30/19)
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From page 126... ...
2/15/20) Consolidated 707,439 817,320 823,124 828,720 873,827 707,439 109,881 5,804 5,596 45,107 Report On Component 2 Master List Yes 706,293 814,304 820,239 825,735 870,357 706,293 108,011 5,935 5,496 44,622 No 21,181 24,930 25,190 25,583 27,326 21,181 3,749 260 393 1,743 Self-Filer 1,135 2,734 2,913 3,125 4,581 1,135 1,599 179 212 1,456 Filed Through 20,046 22,196 22,277 22,458 22,745 20,046 2,150 81 181 287 PEO Submitting Unit Self-Filed Firm 692,635 800,807 806,873 812,520 855,239 692,635 108,172 6,066 5,647 42,719 Submission by 34,839 38,427 38,556 38,798 42,444 34,839 3,588 129 242 3,646 PEO or Alternate Filer SOURCE: Panel generated from Component 2 employer and establishment files for 2017.
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From page 127... ...
TABLE 4-4 2017 Characteristics of Component 2 Establishments, by Completion Date (Percent) Cumulative Within Listed Time Period 6 Weeks 8 Weeks 12 Weeks 16 Weeks Pub- 6 Weeks 8 Weeks 12 Weeks 16 Weeks Published Later Later Later Later lished Later Later Later Later Establishment Deadline (10/1/19– (11/12/19– (11/26/19– (12/24/19– Deadline (10/1/19– (11/12/19– (11/26/19– (12/24/19– Characteristics (9/30/19)
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From page 128... ...
2/15/20) Consolidated 97.2 97.4 97.4 97.3 97.3 97.2 98.3 93.7 95.0 97.3 Report On Component 2 Master List Yes 97.1 97.0 97.0 97.0 97.0 97.1 96.6 95.8 93.3 96.2 No 2.9 3.0 3.0 3.0 3.0 2.9 3.4 4.2 6.7 3.8 Self-Filer 5.4 11.0 11.6 12.2 16.8 5.4 42.7 68.8 53.9 83.5 Filed Through 94.6 89.0 88.4 87.8 83.2 94.6 57.3 31.2 46.1 16.5 PEO Submitting Unit Self-Filed Firm 95.2 95.4 95.4 95.4 95.3 95.2 96.8 97.9 95.9 92.1 Submission by PEO 4.8 4.6 4.6 4.6 4.7 4.8 3.2 2.1 4.1 7.9 or Alternate Filer SOURCE: Panel generated from Component 2 employer and establishment files for 2017.
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From page 129... ...
2/15/20) Total 764,367 883,043 889,007 897,407 935,528 764,367 118,676 5,964 8,400 38,121 Size Less than 100 645,698 745,133 750,027 757,602 791,020 645,698 99,435 4,894 7,575 33,418 100–249 79,733 93,338 94,007 94,517 97,620 79,733 13,605 669 510 3,103 250–499 24,784 28,161 28,403 28,584 29,549 24,784 3,377 242 181 965 500–999 8,778 10,047 10,154 10,239 10,623 8,778 1,269 107 85 384 1,000 or More 5,374 6,364 6,416 6,465 6,716 5,374 990 52 49 251 Federal Contractor Yes 360,606 418,780 420,549 422,442 437,505 360,606 58,174 1,769 1,893 15,063 No 403,568 464,003 468,195 474,690 497,732 403,568 60,435 4,192 6,495 23,042 Submission Status Single Establishment 20,755 22,891 23,216 23,451 24,708 20,755 2,136 325 235 1,257 Consolidated Report 743,612 860,152 865,791 873,956 910,820 743,612 116,540 5,639 8,165 36,864 On Component 2 Master List Yes 740,357 854,544 860,220 868,299 904,218 740,357 114,187 5,676 8,079 35,919 No 24,010 28,499 28,787 29,108 31,310 24,010 4,489 288 321 2,202 129 continued
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From page 130... ...
TABLE 4-5 Continued 130 Cumulative Within Listed Time Period 6 Weeks 8 Weeks 12 Weeks 16 Weeks 6 Weeks 8 Weeks 12 Weeks 16 Weeks Published Later Later Later Later Published Later Later Later Later Establishment Deadline (10/1/19– (11/12/19– (11/26/19– (12/24/19– Deadline (10/1/19– (11/12/19– (11/26/19– (12/24/19– Characteristics (9/30/19)
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From page 131... ...
2/15/20) Total 100 100 100 100 100 100 100 100 100 100 Size Less than 100 84.5 84.4 84.4 84.4 84.6 84.5 83.8 82.1 90.2 87.7 100–249 10.4 10.6 10.6 10.5 10.4 10.4 11.5 11.2 6.1 8.1 250–499 3.2 3.2 3.2 3.2 3.2 3.2 2.8 4.1 2.2 2.5 500–999 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.8 1.0 1.0 1,000 or More 0.7 0.7 0.7 0.7 0.7 0.7 0.8 0.9 0.6 0.7 Federal Contractor Yes 47.2 47.4 47.3 47.1 46.8 47.2 49.0 29.7 22.6 39.5 No 52.8 52.6 52.7 52.9 53.2 52.8 51.0 70.3 77.4 60.5 Submission Status Single Establishment 2.7 2.6 2.6 2.6 2.6 2.7 1.8 5.4 2.8 3.3 Consolidated Report 97.3 97.4 97.4 97.4 97.4 97.3 98.2 94.6 97.2 96.7 On Component 2 Master List Yes 96.9 96.8 96.8 96.8 96.7 96.9 96.2 95.2 96.2 94.2 No 3.1 3.2 3.2 3.2 3.3 3.1 3.8 4.8 3.8 5.8 131 continued
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From page 132... ...
TABLE 4-6 Continued 132 Cumulative Within Listed Time Period 6 Weeks 8 Weeks 12 Weeks 16 Weeks Pub- 6 Weeks 8 Weeks 12 Weeks 16 Weeks Published Later Later Later Later lished Later Later Later Later Establishment Deadline (10/1/19– (11/12/19– (11/26/19– (12/24/19– Deadline (10/1/19– (11/12/19– (11/26/19– (12/24/19– Characteristics (9/30/19)
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From page 133... ...
.4 From Census Bureau data, establishment birth and death rates vary by firm size. The smallest firms (less than 20 employees and thus not eligible for the Component 2 data collection)
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From page 134... ...
The panel adopted an outlier rule at the firm level, excluding any firm and its associated establishments if the total number of employees exceeded a threshold of 1.4 million (the size of the largest U.S. employer)
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From page 135... ...
The failures to match are two to three times that of establishment birth and death rates reported by the Census Bureau across all establishments. There are several potential explanations for the large number of nonmatches: some firms may have chosen to participate in the Component 2 data collection in only one year; some may have reported establishments on Type 6 reports in one but not both years; and errors linking establishments across years may have led to non-matches, even for establishments that existed in both years.
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From page 136... ...
136 TABLE 4-7 Characteristics of Component 2 Establishments, by Year Total Establishments Total Establishments In 2017 Only In 2018 Only 2017 2018 N % of 2017 N % of 2018 Total 897,770 935,610 182,546 20.3 220,386 23.6 Submission Status Single establishment 23,643 24,708 1,394 5.9 2,459 10.0 Consolidated report 874,127 910,902 181,152 20.7 217,927 23.9 Filer Is Federal Contractor Yes 423,744 437,661 92,094 21.7 106,011 24.2 No 473,986 497,887 90,414 19.1 114,315 23.0 Missing 40 62 38 95.0 60 96.8 On Component 2 Master List Yes 870,436 904,293 178,467 20.5 212,324 23.5 No 27,334 31,317 4,079 14.9 8,062 25.7 Submitting Unit Self-filed firm 855,538 890,193 173,250 20.3 207,905 23.4 Submission by PEO or alternate 42,232 45,417 9,296 22.0 12,481 27.5 filer SOURCE: Panel generated from Component 2 employer and establishment files for 2017 and 2018. NOTE: Excludes firms reporting more than 1.4 million employees and establishments covered in Type 6 reports.
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From page 137... ...
, birth and death rates fail to exceed two percent in either year. By Industry Sector There is dramatic variation in the presence of establishments across both years of the Component 2 data collection across NAICS sectors (Table 4-9)
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From page 138... ...
138 TABLE 4-8 Years of Appearance of Component 2 Establishments, by Establishment Size 2017 Census Bureau Business Dynamics Statistics (BDS) 2018 Census Bureau Mean Establish- Total Total In 2017 Only In 2018 Only Establishment BDS Establishment ment Size in Establishments Establishments 2017–2018 2017 2018 N % of 2017 N % of 2018 Entry Rate Exit Rate Entry Rate Exit Rate Total 897,705 935,546 182,487 20.3 220,328 23.6 1–4 15.896 15.041 15.435 14.548 5–9 3.634 3.342 3.363 3.216 10–19 2.843 2.597 2.436 2.402 20–99 1.98 2.09 1.792 1.774 Less than 100 756,725 789,838 162,009 21.4 195,122 24.7 100–249 94,680 97,841 12,994 13.7 16,155 16.5 1.100 1.142 1.128 0.909 250–499 28,410 29,598 4,027 14.2 5,215 17.6 500–999 10,538 10,761 1,890 17.9 2,113 19.6 1.054 0.732 0.801 0.498 1,000 or 7,352 7,508 1,567 21.3 1,723 22.9 0.587 0.600 0.383 0.396 More SOURCE: Panel generated from Component 2 establishment files for 2017 and 2018; https://www2.census.gov/programs-surveys/bds/tables/timeseries/bds2019_ez.csv.
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From page 139... ...
TABLE 4-9 Years of Appearance of Component 2 Establishments, by Industry Total In 2017 Only In 2018 Only NAICS Label % of % of Code 2017 2018 N 2017 N 2018 11 Agriculture, Forestry, Fishing, and Hunting 3,172 3,119 864 27.2 811 26.0 21 Mining, Quarrying, and Oil and Gas Extraction 5,981 6,329 1,612 27.0 1,960 31.0 22 Utilities 6,499 6,637 789 12.1 927 14.0 23 Construction 16,144 17,325 4,290 26.6 5,471 31.6 31–33 Manufacturing 67,028 70,211 12,991 19.4 16,174 23.0 42 Wholesale Trade 46,992 48,844 7,083 15.1 8,935 18.3 44–45 Retail Trade 200,603 201,073 29,717 14.8 30,187 15.0 48–49 Transportation and Warehousing 30,038 31,792 4,796 16.0 6,550 20.6 51 Information 32,564 33,525 5,840 17.9 6,801 20.3 52 Finance and Insurance 92,660 96,169 18,375 19.8 21,884 22.8 53 Real Estate and Rental and Leasing 37,271 38,952 8,692 23.3 10,373 26.6 54 Professional, Scientific, and Technical Services 57,219 61,494 16,206 28.3 20,481 33.3 55 Management of Companies and Enterprises 8,323 8,469 3,112 37.4 3,258 38.5 56 Administrative and Support and Waste Management 40,976 44,469 12,279 30.0 15,772 35.5 and Remediation Services 61 Educational Services 5,537 5,686 1,378 24.9 1,527 26.9 62 Health Care and Social Assistance 119,160 127,032 26,800 22.5 34,672 27.3 continued 139
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From page 140... ...
TABLE 4-9 Continued 140 Total In 2017 Only In 2018 Only NAICS Label % of % of Code 2017 2018 N 2017 N 2018 71 Arts, Entertainment, and Recreation 7,773 8,443 1,239 15.9 1,909 22.6 72 Accommodation and Food Services 84,262 89,054 17,130 20.3 21,922 24.6 81 Other Services (except Public Administration) 26,902 28,179 4,766 17.7 6,043 21.4 92 Public Administration 770 991 182 23.6 403 40.7 99 Unclassified 7,896 7,817 4,405 55.8 4,326 55.3 SOURCE: Panel generated from Component 2 employer and establishment files for 2017 and 2018.
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From page 141... ...
The first approach -- and the one taken for this report -- is to compare characteristics of units from the data collection being evaluated (2017 and 2018 Component 2 data collections) to an external set of high-quality data from a well-regarded source such as the Census Bureau or the Bureau of Labor Statistics (BLS)
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From page 142... ...
First, the panel examined how well Component 2 respondents aligned with Component 1 respondents for each year. Although the Component 1 data collection formed a frame for the Component 2 data collection, these collections were separated in time and collected by different data collectors.
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From page 143... ...
Limiting EEOC data to establishments with 100 or more employees would increase comparability with benchmark data for these firms but would exclude over 80 percent of establishments reported in Component 2 data. • Size is measured differently across the three databases.
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From page 144... ...
Size: Differential Coverage of Firms and Establishments by the Component 1 and Component 2 Instruments Starting with the firm-level comparison between Component 1 coverage and Component 2 coverage, more firms filed Component 2 instruments 8 "… in the BDS, geography and industry are defined at the establishment level, and not the firm level. So firms with multiple establishments operating in different geographies or industries will show up in the total firm data for each geography or industry in which they operate at least one establishment" (Census Bureau, 2021e)
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From page 145... ...
Despite exclusion of the smallest firms from the Component 2 data collection, the coverage ratio for establishments with fewer than 100 employees was 116.6 in 2017 and 116.8 in 2018. Coverage ratios for establishments with 100 or more employees were less than 100 for both years overall, with about five to six percent fewer establishments reported in Component 2 data than in Component 1 data, but exceeded 100 for the largest establishments.
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From page 146... ...
. NAICS codes for firms overcovered relative to Component 1 data in both years are NAICS 54 (professional, scientific, and technical services)
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From page 147... ...
TABLE 4-11 Number of Establishments, by Data Source: 2017 and 2018 BDS Coverage Component Coverage Ratio QCEW Coverage Ratio Ratio BLS Census Size of Establishments C1 C2 (100*
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From page 148... ...
Size: Component 2 Data Versus External Benchmarks Looking next at coverage of firms relative to Census Bureau benchmark numbers, firms of all sizes were systematically underrepresented (Table 4-10)
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From page 149... ...
Agriculture, Forestry, Fishing, 617 587 95.1 297 197.6 660 599 90.8 293 204.4 11 and Hunting Mining, Quarrying, and Oil 472 473 100.2 1,002 47.2 500 494 98.8 1,053 46.9 21 and Gas Extraction 22 Utilities 390 381 97.7 558 68.3 396 395 99.7 542 72.9 23 Construction 3,845 3,619 94.1 7,503 48.2 4,126 3,776 91.5 7,875 47.9 31–33 Manufacturing 10,965 10,373 94.6 16,476 63.0 11,324 10,796 95.3 16,399 65.8 42 Wholesale Trade 2,976 2,939 98.8 11,401 25.8 3,207 3,058 95.4 11,183 27.3 44–45 Retail Trade 4,018 3,721 92.6 10,635 35.0 4,177 3,799 91.0 10,578 35.9 Transportation and 1,812 1,687 93.1 6,347 26.6 1,922 1,749 91.0 6,299 27.8 48–49 Warehousing 51 Information 1,509 1,435 95.1 3,696 38.8 1,579 1,516 96.0 3,658 41.4 52 Finance and Insurance 3,862 3,686 95.4 6,016 61.3 3,904 3,775 96.7 5,985 63.1 Real Estate and Rental and 1,269 1,205 95.0 3,827 31.5 1,343 1,259 93.7 3,812 33.0 53 Leasing Professional, Scientific, and 6,051 6,389 105.6 11,355 56.3 6,372 6,843 107.4 11,506 59.5 54 Technical Services continued 149
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From page 150... ...
TABLE 4-12 Continued 150 2017 2018 Census Coverage Census Coverage Coverage Bureau Ratio Coverage Bureau Ratio Component Ratio BDS Component Ratio BDS (100*
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From page 151... ...
Firms with multiple establishments in multiple industries may be counted more than once in the Census Bureau statistics. These statistics are not fully comparable to the Census Bureau statistics in Table 4-10 or the EEOC data presented here.
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From page 152... ...
BDS C2/ BDS) Agriculture, Forestry, 3,289 3,157 96.0 930 339.5 3,363 3,110 92.5 873 356.2 11 Fishing and Hunting Mining, Quarrying, and 6,090 5,984 98.3 6,729 88.9 5,671 6,326 111.5 6,732 94.0 21 Oil and Gas Extraction 22 Utilities 6,018 6,321 105.0 12,251 51.6 6,040 6,637 109.9 12,597 52.7 23 Construction 16,117 16,301 101.1 19,410 84.0 17,511 17,291 98.7 20,126 85.9 31–33 Manufacturing 65,469 66,852 102.1 53,525 124.9 67,558 70,153 103.8 54,993 127.6 42 Wholesale Trade 31,747 46,907 147.8 100,445 46.7 33,037 48,805 147.7 100,508 48.6 44–45 Retail Trade 164,455 202,176 122.9 375,030 53.9 165,505 201,007 121.5 371,420 54.1 Transportation and 29,385 28,389 96.6 52,339 54.2 29,843 31,767 106.4 52,708 60.3 48–49 Warehousing 51 Information 28,631 32,567 113.7 70,813 46.0 27,303 33,519 122.8 73,100 45.9 52 Finance and Insurance 80,627 92,323 114.5 215,028 42.9 81,331 96,084 118.1 216,525 44.4 Real Estate and Rental 27,690 37,145 134.1 86,261 43.1 27,141 38,943 143.5 87,739 44.4 53 and Leasing Professional, Scientific, 52,831 56,996 107.9 94,405 60.4 56,191 61,427 109.3 93,150 65.9 54 and Technical Services
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From page 153... ...
Firms with multiple establishments in multiple industries may have been counted more than once in Census Bureau statistics. These statistics are not fully comparable to the Census Bureau statistics in Table 4-11 or EEOC data presented here.
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From page 154... ...
Thus, in terms of providing usable data, the Component 2 data collection shows undercoverage of more than 40 percent for both firms and establishments. Benchmark data by size of establishment for eligible firms (those with at least 100 employees)
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From page 155... ...
Industry: Component 2 Data Versus External Benchmarks Industry classifications of firms in the Component 2 data collection were compared with industry classifications in the Census Bureau's BDS. It is well established that separate administrative data systems sometimes assign different NAICS codes to the same firm and/or establishment (Foster et al., 2021)
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From page 156... ...
were overcovered in Component 2 data compared to the Census Bureau benchmark data, with a coverage ratio of 124.9 in 2017 and 127.6 in 2018. Establishments with NAICS codes 21(mining, quarrying, and oil and gas extraction)
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From page 157... ...
private firms and establishments, partly due to nonresponse but primarily due to inadequacies in EEOC's frame. Without weighting for nonresponse and poor coverage in the survey frame, the data are not appropriate for generating population statistics.
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From page 158... ...
158 COMPENSATION DATA COLLECTED THROUGH THE EEO-1 FORM RECOMMENDATION 4-2: When preparing national and sub national statistics for the public, EEOC should adopt statistical weighting to adjust for possible undercoverage and nonresponse biases. RECOMMENDATION 4-3: EEOC should use consistent and unique firm and establishment identifiers, facilitating data merges and data checking.
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