Changepoint Tests Designed for the Analysis of Hiring Data Arising in Employment Discrimination Cases

By Freidlin, Boris; Gastwirth, Joseph L. | Journal of Business & Economic Statistics, July 2000 | Go to article overview

Changepoint Tests Designed for the Analysis of Hiring Data Arising in Employment Discrimination Cases


Freidlin, Boris, Gastwirth, Joseph L., Journal of Business & Economic Statistics


When a complaint of discrimination is made, an employer may respond by hiring more minorities. From a legal viewpoint, the practices in effect during the time period prior to the complaint are more relevant for determining liability than those of the postcharge period. In Gay v. Waiters, the trial judge observed that the data suggested that a change occurred after the charge was filed. Because the data had not been subject to a formal statistical analysis, the court was reluctant to base its decision on this observation. Gastwirth and Freidlin and Gastwirth proposed cumulative-sum-based procedures for the analysis of hiring data following the binomial model. In this article, the procedures are extended to data following the hypergeometric model and to analysis of stratified data. Several datasets that were submitted to the courts in the United States are analyzed by the proposed methods. Because the data are usually reported by year, the ordinary large-sample theory is not sufficiently accurate. Therefore, we obtain the p values of the statistics by simulation. For binomial data, recent improvements in the Bonferroni inequality are used to derive a new upper bound.

KEY WORDS: Binomial data; Changepoint; Fair hiring practices; Hypergeometric data.

After a complaint of discrimination in hiring is filed, the employer may change its practices. By the time the trial occurs, the defendant may submit hiring data showing that a protected group received its "fair share" of hiring over a time frame that includes both the precharge and postcharge periods. From a legal viewpoint the most relevant time period is the one just prior to a complaint (see O'Brien v. Sky Chefs. Inc. 1982). The issue of whether there has been a change in employment practices has occurred in several cases (e.g., Gay v. Waiters 1982).

When a test procedure is being developed for a particular application, one can increase its power by directing the test at a specific alternative. Agresti (1990, pp. 97-102) presented several examples of such procedures; Levin and Kline (1985) developed a changepoint test to detect a sudden increase in the proportion of chromosomally abnormal abortions and a subsequent decline to the normal level. The pattern of concern in the legal setting is underrepresentation before the charge and a change to fair or even overhiring of minorities sometime after the charge but prior to the trial. This article modifies the tests based on the cumulative sums (CUSUM's) to have more power against this alternative. In statistical literature, changepoint methods were discussed by Page (1954), Chernoff and Zacks (1964), Hinkley and Hinkley (1970), Pettitt (1979, 1980), Worsley (1983), Siegmund (1986), James, James, and Siegmund (1987), Lombard (1987), Csorgo and Horvath (1988), Bhattacharya (1987, 1994), and Brostrom (1997). Econometric applications often involve dependent observations. Appropriate changepoint techniques were developed by Ploberger and Kramer (1990), Banerjee, Lumsdaine, and Stock (1992), Chu and White (1992), Jandhyala and MacNeill (1992), Andrews and Ploberger (1994), and Vogelsang (1997).

The data available for examining hiring practices typically follow either a hypergeometric or a binomial model (Baldus and Cole 1980; Gastwirth 1988; Finkelstein and Levin 1990; Paetzold and Willborn 1994). When data on the actual applicants are available and reliable, the hypergeometric model is appropriate. When the applicant data are unavailable or when fair recruitment is an issue, the minority share of the qualified labor force is determined from the census data on the members of the labor force in the area with the relevant skills. Then the hiring data are modeled by a binomial distribution. Section 1 describes procedures for the binomial model, including an upper bound for the p value of our statistics. The additional insight obtained from the CUSUM methods is illustrated on data from a case that settled.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Changepoint Tests Designed for the Analysis of Hiring Data Arising in Employment Discrimination Cases
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.