/Introduction-to-Causal-Inference-for-People-Analytics

Introduction to Causal Inference for People Analytics

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Introduction-to-Causal-Inference-for-People-Analytics

Simpson paradox & Gender pay gap

To illustrate the Simpson paradox, I created a typical salary right skewed distribution from 4 salary normal distributions:

  • Female non management (Number: 950 employees, Mean: 2,600 EUR, Standard deviation: 700 EUR)
  • Female management (Number: 50 employees, Mean: 4,200 EUR, Standard deviation: 1,000 EUR)
  • Male non management (Number: 750 employees, Mean: 2,400 EUR, Standard deviation: 700 EUR)
  • Male management (Number: 250 employees, Mean: 4,000 EUR, Standard deviation: 1,000 EUR)

Simpson paradox-Gender pay gap-4 normal distributions

You can visualize the different distributions:

  • The salary right skewed distribution
  • The salary distribution by gender
  • The salary distribution by gender & job family
  • The salary distribution by job family

Simpson paradox-Gender pay gap-4 density plots

Eventually, you realize that:

  • while, the mean salary for males is higher than the mean salary for females
  • the mean salary for males is lower than the mean salary for females when you consider job families

Simpson paradox-Gender pay gap-Means differences