The Semilogarithmic Earnings Equation and Its Use in Assessing Salary Discrimination in Academe.

Abstract The use of a semilogarithmic earnings equation to analyse gender-based salary differentials is now common practice in both academic studies and legal proceedings. When gender differences are detected, however, the cost of alternative adjustment mechanisms to equalize the pay of men and women is overlooked. This paper shows the different costs that arise from paying women a percentage increase on their actual salaries versus paying them predicted salaries as if they were men. The political consequences of enacting these different equalization methods are also considered. The data collection and analysis for this study partly reflect the response of a large public teaching/research university to a class-action lawsuit.

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