Evaluation of Compensation Data Collected Through the EEO-1 Form (2023) / Chapter Skim
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. Additionally, establishments filing Type 6 reports are instructed to file using NAICS code 999999 (Type 6)
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. The size distribution was similar for those 170,209 establishments that were reported for 2017 after the initial deadline, and for which size information is available.
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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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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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NOTE: Excludes firms reporting more than 1.4 million employees, establishments covered in Type 6 reports, and firms and establishments with 0 employees.
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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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NOTE: Excludes firms reporting more than 1.4 million employees, establishments covered in Type 6 reports, and firms and establishments with 0 employees.
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TABLE 4-5 2018 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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NOTE: Excludes firms reporting more than 1.4 million employees, establishments covered in Type 6 reports, and firms and establishments with 0 employees.
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TABLE 4-6 2018 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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NOTE: Excludes firms reporting more than 1.4 million employees, establishments covered in Type 6 reports, and firms and establishments with 0 employees.
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have lower establishment birth and death rates.5 In data reported by the Census Bureau, establishment birth and death rates also varied by establishment size, with the highest birth and death rates for the smallest-sized establishments.6 EEOC asked the panel to evaluate the same reporting unit's response rates for 2018 Component 2 data and 2017 Component 2 data. Since EEOC indicated that enforcement most often occurs at the establishment level, the panel focused on how many establishments that reported in 2017 appeared only in reports from 2017 filers, and how many establishments that reported in 2018 appeared only in reports from 2018 filers.
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Merge based on unique matches of the firm's Employer Identifica tion Number (EIN) and the establishments' address fields (Address and Address2)
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It is possible that address and NAICS codes were more consistently identified for single establishments over the two years, facilitating greater matching of units across time. It is also possible that establishments within firms were created or closed, or that firms inadvertently omitted establishments from their reports.
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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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Single-establishment firms with fewer than 100 employees are not eligible for filing the Component 2 instrument and thus are not required to appear in the data file; multi-establishment firms with a total size greater than 100 employees but with establishments with fewer than 100 employees are required to report on their establishments. Thus, it is not surprising to see reduced consistency in reporting for establishments with fewer than 100 employees compared to larger firms.
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Excludes firms reporting more than 1.4 million employees and establishments covered in Type 6 reports. NOTE: Establishments not reporting the number of employees in both 2017 and 2018 are omitted.
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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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Excludes firms reporting more than 1.4 million employees and establishments covered in Type 6 reports. NOTE: Establishments not reporting the number of employees in both 2017 and 2018 are omitted.
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First, although there are unique identifiers attached to firms for reporting purposes, the establishments within a firm do not necessarily use unique identifiers consistently in reporting. Assigning a unique identifier to establishments as well as firms will facilitate examination of data for the same firm over time, allowing EEOC to evaluate whether pay gaps are systemic.
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. Because BLS permits tabulations by establishment size, BLS information was added to the benchmarks for the establishment level.
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. • QCEW and BDS provide data on the size of establishments but not of establishment size by firm size.
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. NAICS codes are assigned by the Census Bureau from NAICS classification surveys, including reports about business primary activities.
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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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65,910 66,376 100.7 114,111 58.2 100–499 49,468 49,558 100.2 91,623 54.1 500–999 7,727 7,774 100.6 10,915 71.2 1,000 or more 8,715 9,044 103.8 11,573 78.1 SOURCE: Component 2 employer files for 2017 and 2018; https://www2.census.gov/ programs-surveys/bds/tables/time-series/bds2019_fz.csv NOTE: Excludes firms reporting more than 1.4 million employees, establishments covered in Type 6 reports, and firms and establishments with 0 employees. Industry: Differential Coverage of Firms and Establishments by the Component 1 and Component 2 Instruments Focusing only on firms with at least 100 employees, firms are slightly undercovered in almost every industry compared to Component 1 data, with coverage ratios between 90 and 100 for almost every industry (Table 4-12)
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. NOTE: Excludes firms reporting more than 1.4 million employees, establishments covered in Type 6 reports, and firms and establishments with 0 employees.
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for most industries. In particular, there were more establishments reported in Component 2 data than in Component 1 data in both years for 14 NAICS codes: 22 (utilities)
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TABLE 4-12 Number of Firms, by Industry and Data Source: 2017 and 2018 2017 2018 Census Coverage Census Coverage Coverage Bureau Ratio Coverage Bureau Ratio Component Ratio BDS Component Ratio BDS (100*
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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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92 Public Administration 131 236 180.2 – – 164 245 149.4 – – 99 Unclassified 0 777 – – – 32 1,007 3146.9 – – SOURCE: Panel generated from Component 2 employer files for 2017 and 2018. https://www2.census.gov/programs-surveys/bds/tables/time-series/ bds2019_sec_fz.csv NOTE: Excludes firms reporting more than 1.4 million employees, establishments covered in Type 6 reports, establishments with 0 employees, and firms with fewer than 100 employees.
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TABLE 4-13 Number of Establishments, by Industry and Data Source: 2017 and 2018 152 2017 2018 Coverage Coverage Coverage Coverage Component Ratio Ratio Component Ratio Ratio Census Census NAICS (100* Bureau (100*
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https://www2.census.gov/programs-surveys/bds/tables/time-series/ bds2019_sec_fz.csv NOTE: Excludes firms reporting more than 1.4 million employees, establishments covered in Type 6 reports, establishments with 0 employees, and firms with fewer than 100 employees. In Census Bureau statistics, establishments with fewer than 100 employees were excluded.
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These two coverage rates are fairly similar, but they hide the fact that much of the Component 2 dataset is not usable for pay-equity analysis because filers exercised their option to submit only total number of employees (i.e., Type 6 reports) without also specifying sex, race/ethnicity, or pay bands (i.e., Type 8 reports)
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The coverage of establishments varied widely by establishment size. The largest establishments (with 1,000 or more employees)
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SUMMARY This chapter examined the pay data available in the Component 2 collections for reporting years 2017 and 2018. We found firm-level response rates were high, exceeding the court-mandated response rate.
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However, data quality issues appeared when examining coverage (data quality is discussed further in Chapter 5)
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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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However, five percent of establishments and 19 percent of firms had some form of problematic data, indicating that problematic cells were widely dispersed. About 16 percent of SRO cells had conflicting responses in Component 1 versus Component 2 data for the same year (one measure was zero while the other was not)
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The chapter concludes with recommendations for further quality analyses and for strengthening future data-collection efforts, to reduce measurement errors and improve fitness for use. To briefly summarize the key findings, measurement quality was assessed both before and after filtering the data (i.e., removing a small 1 In 2018 and 2019, EEO-1 data collections occurred in two components.
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data quality issues noted and tracked by
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. The overarching question of this chapter is whether important measurement quality issues exist for current Component 2 data that EEOC could address before the next round of data collection, through improvements to survey design or administration.
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• Comparisons between Component 1 and Component 2 data to identify: • inconsistencies between Component 1 and Component 2 data for the number of employees in data cells defined by SRO; and • reliability estimates for number of employees at the SRO level, treating Component 1 and Component 2 data as parallel measures. • Comparisons between 2017 and 2018 Component 2 data, including • inconsistencies between years of Component 2 data for the number of employees and hours worked in SROP cells, and • index of inconsistency estimates (defined below)
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µ =establishment, µikik that the Let Let denote total number i= i −Μ iof Μ, the referred employees various toisobserved measurement quality indicators for the bias, and ii designed note to bethe predi =note kthat i – M i.that = i i rred red totothat where where as asLet measurement measurement Ε the the Ε bias, Y=i ∑ isum sum −Μ keand is is bias,note bias, over over i and denote that and SROP SROP note note total that cells cells number reported where reported of i i.
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