We now examine the regression analysis of race/ethnicity impacts on compensation. The results for this analysis are similar in format to the regression analysis by gender. This also shows that 100% of the observations are in qualified comparison groups, also indicated in the rightmost column. The first row of the table provides a regression comparison between the reference group and all minority groups combined, in addition to regression comparisons between the reference group and each individual protected group. The negative estimated impact values indicate that compensation practices favor the reference group, while positive values indicate otherwise, with standard deviations ranging from 0.06 to 0.85. Note in this example that these results do not indicate a statistically significant difference based on OFCCP guidelines.
The detailed report will include a statistical test of the factors used in the regression model. For this analysis, a table is included with the number of observations used in the analysis, the degrees of freedom for error and the percent of the variation explained by the model. For the overall analysis of gender impacts on compensation, the selected model with the included factors explains 86.5% of the variation in compensation. In the subsequent table, note that service, EEO job code and job title have a significant impact on compensation at a 95% confidence level, as indicated by the highlighted standard deviation values of 5.20, 3.56, and 7.30.
Another option is to display only significant regression results. This would only include the items from the standard analysis that produced significant results. This also provides information such as reference groups and controls used in the regression model. Note that all the resulting estimated impact for this specified report would be highlighted in red or bolded since only results considered significant based on typical OFCCP guidelines are included. For this regression analysis, the “Black” employees appears to have a pay rate that is 71.35% less than the reference race within the “white” job group. However, note that none of these are in qualified comparison groups since there are only 20 employees in the group (based on OFCCP’s 30/5 rule).
