Historically, women have often earned less than men for performing the same job,

Question

Historically, women have often earned less than men for performing the same job, a phenomenon known as the

gender wage gap.1 During this activity, we will explore the gender wage gap using two random permutation

tests. The first test will explore whether the the mean salary of male accountants and auditors is significantly

greater than that of females. The second test will investigate whether the ratio of the median salary of female

accountants/auditors to the median salary of their male counterparts is significantly less than 1. (A ratio of 1

would indicate that the median female and male salaries are the same.) The data set, which I downloaded from

the IPUMS-USA database , consists of the total personal earnings for a sample of white females and males aged 25-34 with Bachelor’s degrees who work full-time as accountants or auditors in New Jersey. These data are a narrowly defined subset of a random sample collected as part of the 2014 American Communities Survey. Download the file named 2014ACSgender_salary.jmp and complete the following analyses.

w 3/0 Cols 2 44/0 10 11 12 13 14 15 16 18 Age 2014ACS gender salary.jmp Gender Earned Income 30 Female 85,000 28 Female 60,000 75,000 26 Male 25 Female 52,000 34 Female 97,000 33 Male 100,000 26 Male 60,000 34 Male 135,000 31 Female 105,000 30 Female 9,000 34 Male 50,000 32 Male 60,000 32 Female 40,000 32 Male 130,000 87,000 27 Male 31 Female 62,000 34 Female 56,000 32 Female 63,000

Explanation / Answer

(1) Age: Age is an important factor for studying gender wage gap because it otherwise acts as a confounding varaible anfd may effect the results.

(2) Race: Different races have a huge difference in the gender roles, and therefore, in the gender wage gap.

(3) education level: If the eductation is high, the wage gap is supposed to be low and vica versa.

(4) Occupation: The wage rate depends highly on the occupation of the employed, so occupation also affects the genreal wage gap

(5) Geographic region: The gender roles and therefore gender wage gap is very significantly different at different geographical locations.

(6) Employment Status: If an individual is unemployed then his/her entry shall not be considered in the study at all.

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