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A note on the 'underadjustment phenomenon'

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  • Robbins, Herbert
  • Levin, Bruce

Abstract

In recent work in the area of employment discrimination statistics we have noticed that a basic formula quantifying the degree of underadjustment bias in regression coefficients seems not to have been clearly stated and proved. We believe the underadjustment phenomenon to be of great importance in assessing the validity of multiple regression studies of wage disparities in equal employment litigation, and of observational studies involving two populations in general. Since the argument is based entirely on some simple mathematical features of the linear model, the result should be of interest in other fields of application as well.

Suggested Citation

  • Robbins, Herbert & Levin, Bruce, 1983. "A note on the 'underadjustment phenomenon'," Statistics & Probability Letters, Elsevier, vol. 1(3), pages 137-139, March.
    • Handle: RePEc:eee:stapro:v:1:y:1983:i:3:p:137-139
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