The UK is facing the challenge of interpreting the first round of gender pay gap data and I listed some of the challenges in my article “the 7 ways to misuse gender pay gap data“. In statement 4 of that post, I stated that a lack of understanding of the laws of chance will result in unjustified allegations of gender discrimination against some organisations and so in this article, I want to demonstrate the laws of chance using nothing more than some dice and coins, a process known as simulation. My simulation model is simple enough for you to repeat by yourselves and at the end, you will have a better idea of the extent to which median gender pay gaps can vary even when organisations do not discriminate in any shape or form.
[Read more…] about Pay Gap Case Study #1 – Life on Mars