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Assignment 11: Assessing Pay Discrimination

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Assignment 11: Assessing Pay Discrimination

Step 1: Simple Linear Regression

Regression Statistics
0.42791599
Multiple R 3
0.18311209
R Square 7
Adjusted R 0.15393752
Square 9
Standard Error 30060.4762
Observations 30

ANOVA
Significance
df SS MS F F
6.27642873 0.01832730
Regression 1 5671583293 5671583293 8 9
Residual 28 25301702423 903632229.4
Total 29 30973285716

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

72839.4763 9.82477E-
Intercept 8 7290.736384 9.990688531 11 57905.0799 87773.87285
- 0.01832730 -
Gender_Female -27747.0392 11075.42363 2.505280172 9 -50434.0161 5060.062349

Based on the simple linear regression summary output, there is a significant difference in

salary between male and female non-production workers at Columbus Custom Carpentry, F =

6.28, p < 0.05. Variable 'Gender_Female' has a coefficient of -27,747.04, with p < 0.05. We

reject the null hypothesis that there is no difference in salary between genders. The negative

coefficient suggests that female non-production workers earn, on average, $27,747.04 less than

their male counterparts. This points towards a gender pay gap among non-production workers at

the company.
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Step 2: Multivariate Regression

Regression Statistics
Multiple R 0.81773271
R Square 0.668686785
Adjusted R Square 0.599663199
Standard Error 20677.94605
Observations 30

ANOVA
df SS MS F Significance F
Regression 5 20711426851 4142285370 9.687801224 3.67068E-05
Residual 24 10261858866 427577452.7
Total 29 30973285716

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

Intercept 38819.35469 21003.72061 1.848213248 0.076931383 -4530.194076 82168.90345
-
Gender_Female -5849.14178 8725.057637 0.670384314 0.509012881 -23856.77569 12158.49213
Age 211.1962472 470.7319096 0.448655047 0.657705234 -760.346664 1182.739158
-
Race_NonWhite -16415.28871 9581.560699 1.713216587 0.099563409 -36190.65806 3360.08063
Years of Service 45.97476861 529.2096726 0.086874392 0.931492116 -1046.260314 1138.209851
Job Type_Managerial 50027.02914 10089.39566 4.958377176 4.61945E-05 29203.53996 70850.51832

The multiple linear regression analysis results for the non-production workers at

Columbus Custom Carpentry suggest several insights into factors affecting salaries. Notably, the

regression model has a high R Square value of 0.668686785, indicating that approximately

66.87% of the variability in salary is explained by the model's predictors. After controlling for

other factors in the model, the coefficient for Gender_Female is not statistically significant (p =

0.509). This suggests that the observed pay difference in the simple linear regression may be due

to factors other than gender.

The variable 'Job Type_Managerial' has a statistically significant positive effect on salary

(coefficient = 50027.03, p < 0.0001). However, the variables 'Age,' 'Race_NonWhite,' and 'Years

of Service' did not significantly predict salary, p > 0.05. This suggests that these factors do not
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significantly impact salary differences when other variables are considered within this non-

production worker group.

Step 3: Opinion and Suggestion

Opinion: The data analysis indicates no statistically significant difference in salary between

male and female non-production workers when controlling for other factors such as years of

service. This suggests that gender alone does not significantly predict salary disparities within

this group.

Suggestions:

Maintain Pay Equity: Given that gender does not appear to be a significant driver of salary

differences in non-production roles, continue to ensure that the company maintains pay equity

policies. Regularly review and update compensation structures to ensure that all employees,

regardless of gender, are compensated fairly for their roles and contributions.

Focus on Other Factors: While gender does not seem to be a significant factor, the analysis

highlights the importance of job type. Employees in managerial positions earn significantly

higher salaries. Consider conducting a thorough review of the promotion and career development

processes to ensure that opportunities for managerial roles are accessible to all employees,

irrespective of gender.

Regular Pay Audits: Implement regular pay audits and reviews to monitor and address any

emerging pay disparities. This includes assessing compensation based on variables other than

gender, such as job performance, education, and experience. These audits can help identify and

rectify any unintended pay gaps that may arise over time.
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Training and Education: Provide training and education programs on diversity, inclusion, and

unconscious bias to all employees. Awareness and education can contribute to a more inclusive

workplace culture.

Regular Data Analysis: Conduct regular data analyses to identify any changes or trends in pay

disparities. Monitor the impact of implemented strategies and adjust them as needed to ensure

ongoing pay equity.