Abstract
Abstract To analyze hiring data in equal employment cases, the available positions should be stratified in accordance with the qualifications needed for the jobs. It is then necessary to combine the results of each stratum to obtain an overall test of equal hiring rates. Furthermore, a summary measure, which compares the hiring rate of a minority applicant to that of a majority one, is then estimated. Indeed, the relative risk measure is used by the government in assessing an employment practice for possible discriminatory impact. Sometimes reliable data on the applicants is unavailable, but an accurate estimate of the minority fraction, πi, of qualified persons in the appropriate labor market is obtainable from census or other external data. Usually the number of hires, t i, in each occupation is small relative to the number of applicants, which itself is a small fraction of the large external pool of qualified persons. Then the number of minority hires, x i, in each occupation can be regarded as a binom...
Published Version
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