Case study – Statistical Wheel of Fortune

Please see the attached word and excel sheet. Power point attached to help answer the  question.

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Round

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Wage Equity Statistical Score Sheet Blank

Case

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1.   Score sheet:

Gender

Median Salary

Round

Round 2

Round

3

End Balance

Female

$47,

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Male

Roll

Men

Women

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Men Women

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Degree	Difference	Per cent
HS	1.4	0.4	3.5
BS	2.5	1.6	0.9	2.78
MBA, masters	4.8	2.9	1.9	2.5263157895

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CASE 4: Statistical Wheel of Fortune: Women’s Edition–MMG 5

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1 Summer 2018 © Turner. Statistical Decision Techniques for Managers.

Many court cases involving discrimination are decided on the basis of statistics. The usual question is ‘could the result (few

women

managers for example) be due to chance or is there a systemic bias in action that prevents member of a class (women, e.g.) from getting ahead?’ You will get to simulate chance via the roll of dice and apply your findings to a data base of information about salary inequities.

1. Take notes on each round-what was rolled on and the result from the appropriate chart.

2. Use Spreadsheet Score sheet to fill out this table. Put the dice roll results on the row Labeled ROLL. You can use the online Virtual Dice or a die (singular of dice).

3. Case 3: The Case Write up forms are posted in the Assignments Modules. There is a Word and Excel file or both. You download them, fill them out and post them to the assignment module. You are uploading two files. On the Word file, draw your own conclusion from the data you got comparing the two populations (

Men

and

Women

wage earners in Massachusetts) in terms of wage equity. You may find the PowerPoint from AAUW helpful on this. 

Gender

Median Salary

Round 1

Round 2

Round 3

End Balance

ROLL

Dice roll # here

Female

$47,000

ROLL

Dice roll # here

Male

$??

Questions:

1. If women earn 78.3% of males’ average annual salary in Mass., what is the average annual salary of males? Put the answer in the “Male” box above.

Background facts:

Mass was the first state to adopt an equal pay for men and women law, 70 years ago.

US Census

https://www.census.gov/prod/2002pubs/p23-210

Median Earnings over working lifetime of age 25-65 (40 years), in millions $.

Degree		Men	Women	Difference
HS	1.4	1.0
BS	2.5	1.6
MBA, masters	4.8	2.9

Dice roll URL:

https://www.random.org/dice/

Roll one die (singleton of dice) and record results.

Men

+3K

+2K

Dice roll is:	women
1. Finance Jobs	+$10,000	0
2. Service jobs	-$10,000
3. Child/care	6% bonus	4% penalty
4. Move to Wyoming	-10K	-15K
5. Ask for a raise		+3K		+2K
6. Higher Ed

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[Introduce yourself.]
The American Association of University Women (AAUW) is a nationwide network of more than 170,000 members and supporters, 1,000 branches, and 800 college/university partner members. [www.aauw.org/join]
For more than 135 years, AAUW members have examined and taken positions on the fundamental issues of the day — educational, social, economic, and political. Our commitment to our mission of advancing equity for women and girls is reflected in all aspects of our work.
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Benson, Katie (BK) – New cover image

The pay gap is a comparison between women’s and men’s typical earnings.
It can be compared by weekly earnings or annual earnings.
[Insert your state pay gap here.]
What Is the Pay Gap?

The pay gap is one of the most pressing issues for women today. This presentation provides an overview of this important topic, which we hope will help you explain it to others.
The gender pay gap is a comparison of women’s and men’s median earnings. Median earnings are typical, not average, earnings. Looking at the salaries of all women and men working full time, the median is the number in the middle of the group. We often say “typical” to refer to median because it is the person “right in the middle.” Half the people earn more, and half earn less.
(Why not use averages? Because very high earnings can pull up the average, but they don’t pull up the middle point in the same way. Average wages tend to be higher than median wages.)
Earnings are usually measured on a weekly or annual basis. Both are valid ways of comparing earnings.
(State pay gap data can be found on pages 8 and 9 of The Simple Truth about the Gender Pay Gap.)
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The earnings ratio and the pay gap for 2015 are calculated using these formulas:
How Do You Calculate the Pay Gap?
Earnings ratio =
women’s median earnings
men’s median earnings
Pay gap =
[men’s median earnings – women’s median earnings]
men’s median earnings
= 80%
= 20%

The calculation of the earnings ratio and the pay gap is simple [read chart].
The annual earnings ratio for 2015 was 80 percent, and the pay gap was 20 percent.
We can also use this same formula and current data from the U.S. Census Bureau to calculate the pay gap for individual states.
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Benson, Katie (BK) – Do we want the script to reflect that the 80% in 2015 was for annual earnings? Because we mention in the previous slide it can be calculated weekly or annually, it could be confusing.
Bibler, Kathryn (BK) – Yep, done.
The Pay Gap over Time
Women’s Median Annual Earnings as a Percentage of Men’s Median Annual Earnings for
Full-Time, Year-Round Workers, 1960–2015
Source: AAUW analysis of data from Proctor et al., U.S. Census Bureau, Income and Poverty in the United States: 2015

While the pay gap has steadily narrowed over time, it is nowhere near being eliminated, and in recent years progress has actually stalled. The gap has narrowed since 1960, due largely to women’s progress in education and workforce participation and to men’s wages rising at a slower rate.
At the rate of change between 1960 and 2015, women are expected to reach pay equity with men in 2059. If changes continues at the slower rate seen since 2001, women will not reach pay equity with men until 2152.
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The Pay Gap and Race/Ethnicity
Median Annual Earnings, by Race/Ethnicity and Gender, 2015
Source: U.S. Census Bureau, 2015 American Community Survey 1-Year Estimates

The pay gap affects women from all backgrounds, but its effects vary among different demographics.
The chart shown here lays out the pay gap by race and ethnicity among full-time workers in 2015.
You can see that among Hispanics, African Americans, American Indians and Alaskan Natives, and Native Hawaiians and other Pacific Islanders, both women and men had lower median earnings than non-Hispanic whites and Asian Americans.
Women were paid less than men were within each racial and ethnic group, and the pay gap between men and women within group was smaller among African Americans, Hispanics, American Indians, and Native Hawaiians compared with that of whites and Asian Americans.
It is clear from the chart, however, that this smaller gender pay gap among these groups is due solely to the fact that American Indian, Native Hawaiian, African American, and Hispanic men were paid substantially less than non-Hispanic white and Asian American men were paid in 2015.
Asian American and white women typically were paid more than other women, and Asian American men were paid the highest wages of any group.
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The Pay Gap in Comparison
to White Men’s Earnings
Earnings Ratio of Women Compared to White Men, by Race/Ethnicity, 2015
Sources: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplements, Table P-38 and
U.S. Census Bureau, 2015 American Community Survey 1-Year Estimates

Using a single benchmark provides a more informative picture. Because non-Hispanic white men are the largest demographic group in the labor force, they are often used for that purpose.
Compared with salary information for white male workers, Asian American women’s salaries show the smallest gender pay gap, with an earnings ratio of 85 percent of white men’s earnings. The gap was largest for Latina and Hispanic women, who were paid only 54 percent of what white men were paid in 2015.
You may notice in this figure that some of the racial and ethnic groups are repeated. This is because AAUW uses two different data sources for earnings ratios by race/ethnicity. For African American, Asian American, and Latina and Hispanic women, we follow the Current Population Survey (CPS). Because the CPS lacks sufficient sample size for smaller demographic groups, we follow the American Community Survey (ACS) for Native Hawaiian and other Pacific Islander, American Indian, and Alaska Native women.
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The Pay Gap and Age
Median Weekly Earnings, by Age and Gender, 2015
Source: U.S. Census Bureau, Current Population Survey, reported in U.S. Department of Labor, U.S. Bureau of Labor
Statistics, Highlights of Women’s Earnings in 2015, Table 1

The pay gap is narrow among younger women and men, but it increases for workers of middle age and older.
For example, in this chart, you can see that among young people ages 16–34, women are paid around 90 percent of what men are paid.
In the peak earning years of 35–64, in contrast, women are paid between 74 and 82 percent of what men are paid.
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The Pay Gap and Education
Median Weekly Earnings, by Level of Education and Gender, 2016
Source: U.S. Census Bureau, Current Population Survey, reported in U.S. Department of Labor, U.S. Bureau of Labor
Statistics, 2016 Usual Weekly Earnings Summary, Economic News Release USDL-17-0105, Table 9

While earnings tend to increase with education level, education does not eliminate the pay gap. The pay gap exists at all levels of education and, in some cases, is larger at higher levels of education.
For example, this chart shows that women with less than a high school diploma were paid 77 percent of what their male peers were paid in 2016, whereas women with advanced degrees were paid only 74 percent of what men with advanced degrees were paid.
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The Pay Gap, Disability, and LGBT People
Workers with disabilities are paid less overall than workers without disabilities.
Women with disabilities are paid even less than men with disabilities.
Sexual orientation and gender identity are connected to discrimination and harassment in workplaces, and may also impact pay.

Disability status is a challenging population demographic to capture because it covers many definitions. In the current American Community Survey (ACS) questionnaire, disability is measured by answering questions related to six disability types: hearing, vision, cognitive, ambulatory, self-care, and independent living.
According to the ACS, in 2015, people with disabilities made just 68 percent of what people without disabilities made. And among people with disabilities, the gender pay gap is substantial: Median pay for women with disabilities is 69 percent that of men with disabilities.
According to the Williams Institute, closing the gender pay gap would significantly mitigate the poverty rates of both same-sex and opposite-sex couples. Using 2012 ACS results, an institute study found that eliminating the gender pay gap would lower poverty rates for couples that include at least one woman.
When we analyze the gender pay gap, it’s also important to include people who do not identify with the gender they were assigned at birth. The Williams Institute estimates that 1.4 million adults in the United States identify as transgender. Preliminary evidence from the National Transgender Discrimination Survey also suggests that people who transition from male to female gender expression experience a drop in pay after the transition, while those who transition from female to male gender expression see no difference in pay or even a small increase.
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Women and men tend to choose different majors in college and to work in different occupations after college.
Women tend to work shorter hours and require more flexible schedules, and women are more likely than men to care for children.
Women experience gender bias and discrimination that are likely responsible for a significant pay gap, even after controlling for other factors.

What Causes the Gender Pay Gap?

The pay gap itself is more complicated than a single number, since it summarizes a huge diversity of women and life circumstances. The origins of the pay gap are also more complicated than a single cause.
Women and men have always participated in the workforce in different ways — and have been treated differently by employers — and though those differences have shrunk over time, they still contribute to women being paid less than men.
One major cause of the gender pay gap is what researchers call occupational segregation, the tendency for men and women to work in different fields with different levels of compensation.
Another substantial cause of the gender pay gap is different patterns of work. Women tend to work fewer hours, are more likely to take time away from the workforce to care for family, and are more likely to need flexible work schedules.
In addition to these factors, research evidence points to the impact of bias and discrimination on women’s pay relative to that of men.
Let’s look a little more closely at these three factors: occupational segregation, work patterns, and gender bias.
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The Pay Gap across Occupations
Earnings Ratio in Median Weekly Pay among Full-Time Workers, Selected Occupations, 2015
Source: U.S. Department of Labor, U.S. Bureau of Labor Statistics, Current Population Survey Annual Average Data Tables,
Table 39

In nearly every line of work, women face a pay gap. Among the many occupations studied by the Bureau of Labor Statistics, women’s earnings are higher than men’s in only a handful.
Jobs traditionally associated with men (like computer programming and aerospace engineering) tend to pay better than traditionally “female” jobs (like nursing and administrative support). Even in jobs where the same level of skill is required, jobs associated with men tend to pay more. Parking lot attendants, who are predominantly men, are paid more on average than child care workers, who are predominantly women, even though child care workers are increasingly required to obtain postsecondary education.
Over the past 50 years, women have started to enter jobs that were once occupied almost entirely by men, but women and men still tend to work in different kinds of jobs. This segregation by occupation is a major factor behind the pay gap. But it’s not the whole story.
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Schedules and Parenting
Women are more likely than men to work part time or take time out of the workforce.
Employers still prefer “traditional” work schedules with long, continuous hours.
When it comes to having children, mothers typically are paid less (the “motherhood penalty”) while fathers typically are paid more (the “fatherhood bonus”).

Women are more likely to leave the workforce or work part time when they have young children. Many stay-at-home and part-time working mothers will eventually decide to return to the full-time workforce, and when they do they may encounter a “motherhood penalty” that extends beyond the actual time out of the workforce.
Fathers, in contrast, do not suffer a penalty compared with other working men. Many fathers actually receive higher wages after having a child, known as the “fatherhood bonus.” Women also tend to work fewer hours than men, even when they work full time. (Full-time work is defined by the Bureau of Labor Statistics as 35 hours a week or more.)
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Gender Discrimination and ias
Few women ascend to the highest positions of leadership, which means losing out on pay.
When women start working in an industry, wages in the industry fall, even for men.
AAUW and other researchers have found that discrimination and bias are responsible for gender pay gaps of between 6 and 12 percent.

Choice of occupation and different patterns of work account for some of the differences in salaries, but they aren’t the whole story.
In 2015, despite making up almost half the workforce, women held only 26 percent of private-sector executive positions, with women of color particularly unlikely to hold such positions. (For more information on the leadership gap, see AAUW’s 2016 report Barriers and Bias: The Status of Women in Leadership.)
So how do we know that discrimination and bias affect women’s pay? Studies have found that as women enter an industry, wages in that industry drop, even for men. Because discrimination cannot be directly detected in most records of income and employment, researchers look for the “unexplained” pay gap after statistically accounting for other factors such as college major, occupation, work hours, and time out of the workforce.
The 2012 AAUW report Graduating to a Pay Gap: The Earnings of Women and Men One Year after College Graduation examines this question. After accounting for the issues raised above as well as others, the study found that there was a 7 percent difference in the earnings of women and men one year after college graduation that was still unexplained. Studies by other researchers have found similar unexplained gaps.
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Public Policy
The Lilly Ledbetter Fair Pay Act, signed into law in 2009
The Paycheck Fairness Act
The Fair Pay Act
Executive orders, regulations, and enforcement efforts

Congress has a history of considering, and in some cases enacting, laws that address discrimination in employment. Yet these legal protections have not ensured equal pay for women and men.
With AAUW’s support, President Barack Obama signed the Lilly Ledbetter Fair Pay Act into law on January 29, 2009. This law lengthens the time period in which employees can bring legal action for pay discrimination lawsuits. It clarifies that pay discrimination can occur when a pay decision is made, when an employee is subject to that decision, or at any time that an employee is injured by it.
Other pending legislative measures include the Paycheck Fairness Act and the Fair Pay Act, which would expand fair pay protections and strengthen enforcement efforts.
On Equal Pay Day in 2014, Obama signed two AAUW-supported executive orders addressing pay discrimination. The first executive order bans federal contractors from retaliating against workers who talk about their salaries, and the second requires the U.S. Department of Labor to collect wage data from federal contractors, including the race, sex, and national origin of employees.
Federal budgets need to ensure adequate enforcement of all civil rights laws through sufficient funding and staffing of the Equal Employment Opportunity Commission, the Office of Federal Contract Compliance Programs, and the various civil rights divisions. The Department of Labor’s Women’s Bureau, the only federal agency devoted to the concerns of women in the workplace, should be fully funded to continue its important work on fair pay issues.
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Equal Pay in the States
Map of States with Equal Pay Provisions, 2016
Source: AAUW

In addition to complying with the 1963 Equal Pay Act, a federal law that prohibits gender-based discrimination in the payment of wages, most states also have some kind of additional equal pay law.
Currently, two states — Alabama and Mississippi — have no state pay equity or sex-based employment discrimination regulations. All other states have at least some basic equal pay protections. But roughly one-third of states also have major loopholes in those protections that allow employers to continue to pay women less than their male counterparts.
Although many states have some equal pay regulations, few state laws include the necessary details to help employers and courts establish and enforce fair pay. AAUW advocates for all states to pass and enforce equal pay laws in addition to developing other innovative ideas that chip away at the gap. Learn more about equal pay in your state at www.aauw.org/resource/state-equal-pay-laws.
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Conclusion
The pay gap is real and pervasive, and it affects all women.
Individuals, employers, and communities need to take action.
For more information and resources, including our one-stop guide on this topic, The Simple Truth about the Gender Pay Gap, visit us online at www.aauw.org.

The pay gap is real and pervasive, and it affects all women.
There is no one silver bullet to fix the problem. Rather, individuals, employers, and communities need to take action.
For more information and resources, including AAUW’s report The Simple Truth about the Gender Pay Gap, visit us online at www.aauw.org. The online version of the report will always have up-to-date information on the pay gap.
Thank you for coming to our presentation. To get informed and involved on pay equity and other issues affecting women and girls, you can join AAUW.
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