← HR Metrics·Compensation & Benefits
Explained Pay-Gap Share
Portion of a between-cohort raw pay gap attributable to legitimate measured factors (Oaxaca–Blinder explained component, β_B convention).
How it’s computed
explained_gap / raw_gap (explained_gap = beta_B · mean_delta_x)
What the evidence shows
Evidence (effect sizes, priors, validity) is syncing from Principia.
Run it on your data
This metric is computed in the People Analytics Toolbox on your own numbers. See pricing — posted, no quotes.
sources: toolbox:metrics-catalog
What the literature says
The measurement literature behind this signal — sourced, so you can defend it.
“It allows for the direct estimation of protected group effects on compensation, as well as an estimation of how factors explaining compensation contribute differently to the compensation of different protected groups.Formally, the interactive model of pay equity takes the…”
— Compensating Employees Fairlymatch 53%
“Academy of Management Perspectives [February 2007])Blau and Kahn also found that accounting for education reduces the raw wage gap by 6.7%.6 This is consistent with research by the U.S. Department of Labor, which found that women were more likely than men to graduate from high…”
— Compensating Employees Fairlymatch 53%
“It is calculated by dividing the sum of salary increase amounts for all eligible employees by the eligible payroll. Both the numerator and the denominator include those who were eligible and participated but received no increase.[C4, GR4]AwardAn amount of cash, a prize, a symbol…”
— Worldatwork Handbook Compensationmatch 52%
Resources: Compensating Employees Fairly · Worldatwork Handbook Compensation