Correlation: Gender vs.

Gross Income
Amie Hale
TaIt College STAT 1510 Online


Correlation: Gender vs. Gross Income
2

Correlation: Gender vs. Gross Income
Amie Hale
TaIt College

Abstract
The primary purpose oI this research is to explore whether income diIIerences exist between men
and women. Furthermore, we explored whether or not they still exist aIter controlling the
variables that contribute to diIIerences in income. Such variables are working hours and
education level. Participants included 1,384 women (60°) and 1,243 men (40°); a total oI
2,268. Controlling the hypothesized inIluences on income, the income diIIerence between men
and women was validated by analyzing the mean and standard deviation. Additional statistical
analysis was perIormed on the sample set which suggest that as a person`s height and weight
increase, so does their shoe size.



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Introduction
Women have become increasingly involved in the job market and in society, in general,
than they have in earlier times. Although this is positive progress, it is obvious that they are still
exposed to a market that is still highly segregated by gender. The most palpable diIIerence
between men and women today is the remuneration diIIerence. An employment report Iound
that women are paid 17° less than men (Organisation Ior Economic Co-Operation and
Development; 2008). It is noted, however, that the gap in salaries has reduced drastically in
recent years.
There are numerous Iactors that can inIluence the variance between the salaries oI men
and women. Two examples are the hours worked and education levels. Consistently there are
two primary reasons: career selection and workplace discrimination. Women tend to take more
time oII oI their careers Ior liIe events such as, child-birth, or to be a stay-at-home mother while
their children are young. Industry analysts inIer that women have more disruptions and typically
spend Iewer years working. As a result, women oIten select careers which require less oI them
in men.
Workplace discrimination is evident in companies that are led by men. Men are viewed
as being less complex. Employers are able to devote more time and training to men because they
are less distracted by Iamily constraints. The perception that women are less dedicated and more
distracted by liIe events oIten results in workplace discrimination. Management isn`t directly
aware oI their bias; however, there is a subliminal tendency to draw toward resources that require
less and provide more value. The only true indicator oI whether, or not, discrimination is present
is to compare employees that are male and Iemale who have the same supervisors and education.


Correlation: Gender vs. Gross Income
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The study reIerenced in this report was a random survey. Participants were not advised
oI anything regarding the questions prior to completing the questionnaire. Based on past
research to determine the correlation between income and gender, it was expected that the
participants represented in the survey will demonstrate that there is a direct correlation between
gender and gross income.
Following the detailed research about the correlation between gender and gross income,
additional analysis was perIormed on the sample data set to determine iI a relationship exists
between:
O A person`s height, weight, and shoe size.
O Political party and iI the participant Ieels President Obama will be re-elected.
O Political party and iI the participant is in Iavor oI the health care bill as passed.
O Political party and iI the participant is in Iavor oI the death penalty.
O Handedness and opinion regarding the death penalty.
O Handedness and amount oI water consumed.
O Age and the participant`s political party aIIiliation.
O Ethnicity and iI the participant Ieels President Obama will be re-elected.
The research detailed in the bullets above provides valuable insight into key subjects beyond
income and gender correlation.
Method
Participants
Participants included 1,384 women and 1,243 men; a total oI 2,268. Participants were
invited to participate in a survey by TaIt College students in the Statistics 1510 Online course,
conducted by ProIessor Brian Jean. Students randomly selected 10 participants. In addition,

Correlation: Gender vs. Gross Income
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students that solicited survey responses received course credit Ior their participation. Each
survey contained 23 questions that included a variety oI topics, including gender and gross
annual income.
Procedure
Students selected 10 survey participants and distributed the surveys via email, mail,
and/or personal distribution. Participants were advised that questions deemed invalid, not
applicable, or any they did not want to answer could be leIt blank. Students had no interaction
with the participants during the survey process.
Upon completion, participants returned their hard copy survey documents to the student.
Survey responses were recorded using an online data collection tool provided by ProIessor Jean.
The data was distributed to the class Ior analysis during an assigned research project.
The data analysis Ior this report was conducted step-by-step to determine iI the theory
that minimizing the diIIerences was consistent with the data, or iI discrimination against women
was present. Samples Irom the survey data was collected in a manner in which enabled a
quantitative analysis oI the ordinal data.
First, a 1-n-k systematic random sample (n) oI 35 representing the entire population (N)
was obtained using the TI-83 calculator and the Iollowing command: RANDINT(2,2628,35).
Then an analysis oI the dataset was conducted to determine the diIIerence oI salary. Next, an
analysis oI the dataset controlling the working-hour variable was perIormed. Last, the sample
data was analyzed to determine the diIIerence between the education levels oI men and women.
This was an important Iactor in explaining the correlation between gender and gross income.


Correlation: Gender vs. Gross Income
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Results
Frequency of Gross Income
The correlation between gender and gross income were Iirst evaluated by comparing the
Irequency distribution oI salaries between men and women to determine the appropriate type oI
measurement oI location. The result was that the Irequency oI higher income levels in men over
women is evident and demonstrated by data that is skewed right in a histogram. A conclusion
derived Irom the Irequency distribution is that more than 50° oI the women in the sample
earned less than 25,000 per year; whereas, only 31° oI men earned the same.
Figure 1: Frequency Distribution of Salaries - Men in Sample
Frequency
10




8




6


31°

31°

4
25°


2





0

25,000 50,000 75,000 100,000 125,000 150,000

Salary


Figure 2: Frequency Distribution of Salaries - Women in Sample
Frequency
10
53°



8



6



4
21° 21°



2




0

25,000 50,000 75,000 100,000 125,000 150,000

Salary

Correlation: Gender vs. Gross Income
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Additional analysis was conducted applying the mean and standard deviation to the gross
income oI all participants in the sample data set.
%able 1: Income Difference (Sample Data)
Gender Sample Size (n) Mean (M) Standard Deviation

Annual Gross Income Male
Female
16
19
47,625
29,115
38,930
29,569
ReIerence: Survey Question #9: Annual Gross Income

As shown in table 1, the average (mean) annual salaries oI men are 18,510 higher than
those oI women. Next in the analysis was to control two other variables that potentially
contributed to the diIIerence in income such as: hours worked and education levels.
Impact of Work Hours on Gross Income
DiIIerence in income between men and women participants is the diIIerence in the hours
oI work they contribute. Men are typically engaged in Iull-time work (40 hours or more per
week); whereas, women are typically engaged in part-time work (less than 40 hours per week).
In the entire sample set, 60° were employed part-time and 40° were employed Iull-time. Part-
time workers generally acquire less income than Iull-time workers do. OI the part-time
participants, 64° were men and 35° were women. When we Iurther analyzed the diIIerence
between incomes oI the Iull-time working men and women by Iocusing only on the Iull-time
participants, our dataset consisted oI 14 participants (36° women, 64° men).

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It would seem more logical that women would make less income because they are
typically part-time workers; however, this theory will have to be proven. To test this theory, the
mean and standard deviation oI the Iull time workers will be analyzed.
%able 2: Income of Full-%ime Participants
Gender Sample Size (n) Mean (M) Standard Deviation

Annual Gross Income Male
Female
9
5
64,222
46,000
41,481
15,984
ReIerence: Survey Question #6: Hours worked per week
Controlling the analysis by including Iull-time workers only Iurther demonstrates there
are signiIicant diIIerences between the salaries oI men and women. Annual salaries vary by
18,222. DiIIerence in income oI men and women is clearly not caused by the number oI hours
the participants devote to their positions.
Impact of Education on Gross Income
A Iinal step in determining iI there was a direct correlation between gross income and
gender was to evaluate the aIIect that education has on income. The Iocus oI this analysis was
to determine the Irequency oI educational levels, and the impact they have on income oI men and
women.
Figure 3: Frequency Distribution of Education Levels - Men in Sample

Frequency
12




10




8

50°




6




4 25°


Correlation: Gender vs. Gross Income
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19°

2




0 1°

AA

BA

HS

MA

N/A
Education Level


Figure 4: Frequency Distribution of Education Levels - Women in
Sample

Frequency
12

63°




10




8




6




4



16°

16°

2




0 5°

AA

BA

HS

MA

N/A
Education Level


Additional analysis was conducted applying the mean and standard deviation to the gross
income oI each education level in the sample data set.
%able 3: Educational Impact on Income (Sample Dataset)
Degree Level Gender Sample Size (n) Mean (M) Standard
Deviation

Associates Degree

Male
Female
4
3
57,000
53,000
29,734
40,706
Bachelor`s Degree Male
Female
3
3
87,333
63,333
54,418
12,583
High School Male
Female
8
12
30,222
12,349
28,173
5,916

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Masters Degree Male
Female
0
1
0
56,000
0
0
Not Applicable Male
Female
1
0
8,000
0
0
0
ReIerence: Survey Question #8: Education Level (completed, not in progress)

Table 3 clearly demonstrates that even aIter considering the gross income, hours worked,
and education levels, it is still unmistakable that there is variance in the income oI men and
women with various educational levels. Annual income varied in participants with Associates
Degrees, Bachelor`s Degrees, and those with High School diplomas. The data Ior participants
with Masters Degrees and High School Diplomas were inconclusive as there was not enough
provided in the sample set.
To provide Iurther insight into the participants, research was perIormed on eight topics
which are detailed in the sections below.
Correlation Between Physical Characteristics
The participant`s physical characteristics and shoe size were evaluated by using
inIerential statistics to determine iI a correlation exists between their height, weight, and shoe
size. Statistical analysis was perIormed using the Spearman`s Correlation due to the dispersion
oI the data as illustrated in Figure 4. Table 4 shows the results which reveal there is strong
evidence (rho ÷ .7698) that the height and weight oI a person are directly related to their shoe
size. This means that as a person grows, so does their shoe size.




Correlation: Gender vs. Gross Income
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Figure 4: Correlation of Height/Weight and Shoe Size



%able 4: Spearman`s Correlation of Height/Weight & Shoe Size
Value
Rho

0.7698
ConIidence Interval (.5797, .8804)
ReIerence: Survey Questions #4: Height, #5: Weight, and #22: Shoe Size
Correlation Between Political Party and Various %opics
Three separate topics related to political party were analyzed. First, we evaluated
whether a participant`s party aIIiliation inIluences how he/she Ieels about President Obama being
re-elected. A chi-squared test was perIormed which revealed that there is strong evidence to
suggest that the participant`s political aIIiliation directly inIluences their position regarding
President Obama`s re-election. Results are illustrated in Table 5 below.

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%able 5: Chi-%est of Political Party and Presidential Re-Election Data
Value
Chi-Squared (x
2
)

12.286
P-Value 0.006
ReIerence: Survey Questions #14: Political AIIiliation & #19: Obama Re-Election
Next, we evaluated whether a participant`s party aIIiliation inIluences how the he/she
Ieels about the health care bill. A chi-squared test was perIormed which revealed that there is
strong evidence to suggest that the participant`s political aIIiliation directly inIluences their
position regarding the health care bill. Results oI the test are illustrated in Table 6 below.
%able 6: Chi-%est of Political Party and Health Care Bill
Value
Chi-Squared (x
2
)

12.88
P-Value 0.005
ReIerence: Survey Questions #14: Political AIIiliation & #17: Health Care Bill
Then we evaluated whether a participant`s party aIIiliation inIluences how he/she Ieels
about the health care bill. A chi-squared test was perIormed which revealed that there is strong
evidence to suggest that the participant`s political aIIiliation directly inIluences their position
regarding the death penalty. Results oI the test are illustrated in Table 7 below.
%able 7: Chi-%est of Political Party and Death Penalty
Value
Chi-Squared (x
2
)

5.744
P-Value 0.125
ReIerence: Survey Questions #13: Death Penalty & #14: Political Party AIIiliation

Correlation: Gender vs. Gross Income
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Correlation Between Handedness, Death Penalty, and Water Consumption
Two separate topics related to handedness were analyzed. First, we evaluated whether a
participant`s handedness inIluences how he/she Ieels about the death penalty. A chi-squared test
was perIormed which revealed that there is strong evidence to suggest that the participant`s
handedness directly inIluences his/her position regarding the death penalty. Results are
illustrated in Table 8 below.
%able 8: Chi-%est of Handedness and Position on Death Penalty
Value
Chi-Squared (x
2
)

2.462
P-Value 0.117
ReIerence: Survey Questions #13: Death Penalty & #18: Handedness
Next, we evaluated participant`s handedness inIluences water consumption. A chi-
squared test was perIormed which revealed that there is strong evidence to suggest that the
handedness directly inIluences the amount oI water consumed. Results oI the test are illustrated
in Table 9 below.


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Discussion
The results oI the primary Iocus oI this research, which was to determine iI there is a
correlation between gender and gross income, demonstrates that there is a diIIerence oI income
between men and women even when variables such as hours worked and education level. The
research reveals that discrimination exists against women in the workplace related to income.
Our society has undergone signiIicant change and we have moved toward gender equality in the
workplace. Despite this progress, the results are disconcerting.
This leads to question regarding the validity oI gender equality initiatives that began in
the late 19th century with the suIIragette movement. It introduced the woman`s property rights
in marriage. The evolution progressed Iurther in the 1960s with initiatives Ior women`s
liberation and Ieminism, which resulted in changes to laws related to anti-sex discrimination
laws (Wikipedia).
The results are indicative oI gender inequality; however, there are a Iew deIiciencies
noted. Survey participants were randomly obtained through the students participating in class.
There was no validation that the surveys were completed using data Irom outside participants. It
is possible that the student completed the survey with artiIicial, biased data. It would be
interesting to conduct the survey with live participants to determine iI the results change.
The survey participants resided within the United States. No other representation was
provided Irom outside countries. It is a strong possibility that the gender inequality varies
throughout the world.
Some expert analysts believe that women, in general, expect a lower salary. They inIer
that this is the true reason why women actually earn more; whereas, men generally expect higher
salaries because they are typically the primary income in a home.

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Further research on gender and income correlation should include analyzing the income
diIIerences between various countries, not just in the United States. Additionally, research
should be conducted ongoing to determine iI the diIIerences diminish as time progresses.



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ReIerences
Development, Organisation Ior Economic Co-Operation and. OECD Employment Outlook -
2008 Edition Summary in English. Paris: OECD, 2008.

Wikipedia. Gender Equality. 02 December 2011. 06 December 2011
·http://en.wikipedia.org/wiki/Gender¸equality~.





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Appendix I Data Set