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Unexplained Pay-Gap Share

Portion of a between-cohort raw pay gap NOT explained by measured factors (Oaxaca–Blinder unexplained component) — the equity-risk signal.

How it’s computed

(raw_gap - explained_gap) / raw_gap

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.

  • Z. DuBois, and L. Fox-Cardamone, “Gender Differences in Pay Expectations: The Roles of Job Intention and Self-View,” Psychology of Women Quarterly , 34 (2010), 215–27. 24Linda Jackson, Philip Hardner, Linda Sullivan, “Explaining Gender Differences in Self-Pay Expectations:…

    Compensating Employees Fairlymatch 54%

  • Among similarly situated employees, differences in overtime earnings by protected group status are typically explained by differences in overtime hours worked by protected group status.Reasons for differences in overtime hours worked by protected group status are varied. For…

    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 52%

Resources: Compensating Employees Fairly