What Happened in Hazelwood: Statistics, Employment Discrimination, and the 80% Rule

Tests of statistical significance have increasingly been used in employment discrimination cases since the Supreme Court's decision in Hazelwood. In that case, the United States Supreme Court ruled that "in a proper case" statistical evidence can suffice for a prima facie showing of employment discrimination. The Court also discussed the use of a binomial significance test to assess whether the difference between the proportion of black teachers employed by the Hazelwood School District and the proportion of black teachers in the relevant labor market was substantial enough to indicate discrimination. The Equal Employment Opportunity Commission has proposed a somewhat stricter standard for evaluating how substantial a difference must be to constitute evidence of discrimination. Under the so-called 80% rule promulgated by the EEOC, the difference must not only be statistically significant, but the hire rate for the allegedly discriminated group must also be less than 80% of the rate for the favored group. This article argues that a binomial statistical significance test standing alone is unsatisfactory for evaluating allegations of discrimination because many of the assumptions on which such tests are based are inapplicable to employment settings; the 80% rule is a more appropriate standard for evaluating whether a difference in hire rates should be treated as a prima facie showing of discrimination.     

Towards a model of effective knowledge transfer within transnationals: The case of Chinese foreign invested enterprises

In this paper Chinese foreign invested enterprises (FIEs) are employed as prototypes to generate a model of how transnationals can transfer both tacit and explicit knowledge between their units as well as between FIEs and the parent organization. We propose that successful intra-organization knowledge transfer depends upon: (1) collective creation of knowledge as intellectual and social capital available throughout the organization; (2) trust-based collaboration among geographically dispersed entities that form the transnational organization; and (3) the willingness and ability of organizational units to use that knowledge. The paper further proposes that organizational knowledge should ideally flow in multiple directions, providing learning opportunities for both investing and host organizations. Implications for transfer of best practices, a specific form of tacit knowledge, are also offered.     

A measure of skewness in offense distributions

It has become a criminological fact of life that a small group of offenders is responsible for a far greater share of offending than its size would suggest. For example, it is well known that in the 1945 Philadelphia birth cohort, 6% of the cohort members committed 52% of the offenses. We argue, however, that the conventional percentaging approach to measuring skewness in offense distributions is inadequate. We propose and apply an alternative approach to measuring offense skewness which utilizes the offense distribution to its fullest and can easily and meaningfully be used for comparisons across or within study populations.