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Lost Earnings - Employee Discrimination


Alleged discrimination in the workforce lends itself to two forms of vocational or economic analyses:  quantification of damages and statistical testing for discrimination.

Quantification of the lost earnings due to discrimination is once again unique, requiring determination of the compensation not awarded.  When the alleged discrimination leads to termination or failure to hire, the quantification analysis is similar to that for Wrongful Termination.  However, in many circumstances, the contention is that the discrimination results in reduced wages while employed.  In these cases, a review of wages paid to employees at the same level is performed to develop benchmarks for measuring damages, if any.

In addition, many discrimination cases benefit from a statistical analysis of employment practices to prove or disprove liability.  This is typically only feasible in cases involving multiple plaintiffs where the employment records of the employer are available.  Here, tests can be developed to determine whether employment practices by age, gender, or race are in keeping with what one would reasonably expect from the target population or whether they can be statistically demonstrated to deviate significantly from these expected levels.  When stated in terms of statistical confidence levels (e.g., 95% confident), these results can be key to (dis)proving the liability portion of the case.

 

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