Revised City of South Bend Disparity Study Report

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City of South Bend Disparity Study 2020 To better explain the data in Table 5-3, its first column of data represents a ratio indicating the share of all sales and receipts held by a demographic group divided by that group's share of all firms. For Blacks, this ratio is 7.67 percent. This is derived bytaking numbers presented in Table 5-2. As shown in Table 5-2, the Black share of sales and receipts for all firms is 0.5 percent; the Black share of total num- ber of all firms is 7.0 percent. With 0.5 percent in the numerator and 7.0 percent in the denominator, the ratio is 7.67 .143 If Black -owned firms earned a share of sales equal to their share of total firms, the disparity would have been 100 per- cent. An index less than 100 percent indicates that a given group is being utilized less than would be expected based on its availability. Courts have adopted the Equal Employment Opportunity Commission's "80 percent rule" that a ratio less than 80 percent presents a prima facie case of discrimination.144 All disparity ratios for non-White firms and White women firms are below this threshold .145 Table 5-2: Demographic Distribution of Sales and Payroll Data —Aggregated Groups All Industries, 2012 143. Pleasenote: while the tables present values that are rounded to the two -digit level, the actual values are not. Hence, using the example presented above, 0.5 divided by 7.0 equals 7.14; however, with the unrounded versions of the data, the result is 7.67. 144. 29 C.F.R. § 1607.4(D) ("A selection rate for any race, sex, or ethnic group which is less than four-fifths (4/5) (or eighty percent) of the rate for the group with the highest rate will generally be regarded by the Federal enforcement agencies as evidence of adverse impact, while a greater than four-fifths rate will generally not be regarded by Federal enforce- ment agencies as evidence of adverse Impact"). 145. Because the data in this tables are presented for descriptive purposes, significance tests on these results are not con- ducted. 01010 Colette Holt & Associates, All Rights Reserved. 75 Number of Receipts - Paid with Paid Number of Annual Firms Paid payroll a, (All Firms) All Firms ($1,000) Employees (Employer Employees (Employer Firms) Employees ($1,000) Firms) ($1,000) Panel A: Distribution of Non -White Firms Native American Panel B: Distribution of All Firms 143. Pleasenote: while the tables present values that are rounded to the two -digit level, the actual values are not. Hence, using the example presented above, 0.5 divided by 7.0 equals 7.14; however, with the unrounded versions of the data, the result is 7.67. 144. 29 C.F.R. § 1607.4(D) ("A selection rate for any race, sex, or ethnic group which is less than four-fifths (4/5) (or eighty percent) of the rate for the group with the highest rate will generally be regarded by the Federal enforcement agencies as evidence of adverse impact, while a greater than four-fifths rate will generally not be regarded by Federal enforce- ment agencies as evidence of adverse Impact"). 145. Because the data in this tables are presented for descriptive purposes, significance tests on these results are not con- ducted. 01010 Colette Holt & Associates, All Rights Reserved. 75