In: Economics
Suppose researchers undertake an audit study to measure discrimination. Explain the steps.
An audit is a survey method of doing tests, they are also knows
as Tests.They are used to study the racial, gender discrimination
in car sales,in hiring jobs,preparing quotes for insurance,for
house sales.Studies of Housing discrimination happened in United
States, and their audit results helpful in enforcing civil right
laws.
Steps-
Firstly,people for any two groups are selected,they are trained and
paired them together so that they can equally qualify while
studying the market.One member of the team is from legally
protected minor group and other from the legally protected majority
group.
After that, a newspaper as a sampling frame is selected and the
sample is drawn,and the audit gets conducted for each observation
present in the sample.
Next,the audit teammates who are paired for an observation visit
the economic agent and engage themselves in some market activity
like applying for job.
Then each teammate members independently note down how he or she
was treated.
Discrimination would exist if minor auditors are treated badly than
other teammates.