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Appendix B: Audit Studies and the Assessment of Discrimination
Pages 67-72

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From page 67...
... To simplify the following discussion, the term "black" is used to encompass racial minorities. Discrimination here refers to adverse market discrimination, which can occur in two ways.
From page 68...
... THE AUDIT MODEL AND INDIVIDUAL-LEVEL DISCRIMINATION Sometimes audit results are reported by audit pair (averaged over realtors and circumstances of audit visits)
From page 69...
... THE AUDIT MODEL AND OVERALL-LEVEL DISCRIMINATION As long as audit pairs are matched on all qualifications that vary in distribution by race, audit results averaged over realtors, circumstances of the visits, and auditors can be viewed as an unbiased estimate of overalllevel discrimination (i.e., average level of adverse market discrimination)
From page 70...
... COMMENTS Audit pairs need only be matched on all qualifications that vary in distribution by race to provide an unbiased estimate of average or overall discrimination. Audit pairs may be matched on other characteristics (to improve statistical power)
From page 71...
... The test coordinator can then use the additional information requested of the first auditor to form a closer match by maintaining a consistent life story for the second auclitor. Thus the realtor determines which individual characteristics Beyond the customary suitability requirements and race)
From page 72...
... Thus large differences can be paired with a small flea weight and vice versa, and so the definition of overalllevel discrimination changes with the distribution of realtors, ea. How difficult would it be to match the market to the qualifications of blacks; that is, to choose home advertisements (i.e., realtors)


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