Logistic Regression (LR) is a statistical method that is useful for evaluating why adverse impact may be occurring in a hiring or promotional process. While classic 2 X2 table analysis can identify whether the observed hiring or promotion rates between two groups are significantly different, LR can determine if job-relevant qualification factors (e.g., experience or education) of the individuals included in the analysis explain the difference in hiring or promotion (as opposed to gender or race being the reason). Learn more about the BCG Institute for Workforce Development by going to www. BCGInstitute.org Visit http://bcginstitute.org/?AIBookSeries to learn about the Adverse Impact and Test Validation webinar series based on Dr. Biddle's book.

1. Using Logistic Regression to
Evaluate Adverse Impact
BCGi: Adverse Impact & Test
Validation Book Series

2. Logistic Regression Overview
• Classic adverse impact analyses can only
determine if the numerical difference in passing
rates between two groups is significantly
different.
• Logistic Regression (LR) can identify if that
numerical difference in passing rates is due to
applicant differences in job-related criteria (e.g.,
experience or education).
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3. Logistic Regression Example
Relevant
Experience
Hiring
Gender Decision(s)
Reference
Education Check Score
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4. Logistic Regression Overview
• LR needs to be applied to job-related factors that were actually
used or considered in the selection process
• LR should be mapped onto actual positions, hiring data, and hiring
decisions, not theoretical ones
• LR is useful for weighing the practical importance of job-related
factors in the hiring or promotion process
• LR can also be useful for determining “shortfall” calculations
― For example, how many women would have been hired “but
for” the possible discrimination?
― What is the total shortfall for women, given what the model
can explain?
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5. Why is this Topic Important to HR/EEO Professionals?
• Why do I need to know about this topic?
– LR can be a powerful tool to justify adverse impact in some
cases
– Critical concept on both sides of EEO issues
• What are the key essentials I need to know about this topic?
– What circumstances are best for LR analyses?
– How can a LR dataset be set up?
– How to understand the key essentials in an LR report?
• What are the consequences surrounding these issues?
– Adverse impact left unjustified (either through LR or validity,
or both) constitutes a huge liability for both audits and court
cases
– Can be a more powerful tool that standard AI
– LR can be useful for counting and re-counting shortfalls
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6. Presentation Overview
• Overview & Background
• The Connection between Classic AI & LR:
– Why Classic AI should be established before using LR
• Three Steps for Building an LR Dataset
• Nine Steps for Conducting an LR Analysis
• Model Refinement & Examining Assumptions
• Interpreting LR Analysis Results
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7. Resources
• Adverse Impact and Test Validation: A Practitioner's
Handbook by Daniel A. Biddle, Ph.D.
– Purchase online at www.BCGinstitute.org
• Adverse Impact and Test Validation Book Series Webinars
– Recordings available online for all BCGi Platinum Members
– Webinar slides available online to all BCGi Standard & Platinum
Members
• BCGi Membership
– Free Standard Membership
– Premium Platinum Membership
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8. About Our Sponsor: Biddle Consulting Group (BCG)
BCG is an HR firm dedicated to providing the highest products and services related to
Equal Employment Opportunity (EEO), Affirmative Action and Employee Selection.
• BCG’s Consulting Services
― Affirmative Action Plan Outsourcing
― Compensation Analysis
― EEO/AA Litigation Support (Plaintiff and Defendant)
― Job Analysis
― Test Development and Test Validation
• BCG’s Software Products
― Adverse Impact Toolkit™
― AutoAAP® affirmative action plan development software
― AutoGOJA® job analysis software
― C4 call center testing software
― COMPARE™ compensation analysis software
― CritiCall® dispatcher/call-taker personnel selection software
― ENCOUNTER soft skills video situational judgment testing software
― OPAC® office skills testing software
― TVAP™ Test Validation & Analysis Program software
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