What Is a Disparity Study?

A disparity study examines whether there is a statistically significant difference between the percentage of City contract dollars awarded to minority- and women-owned businesses and the availability of those businesses within the City’s relevant geographic market area. The study also evaluates whether any identified disparities can be explained by factors unrelated to race or gender. These findings help governments determine whether there is a compelling governmental interest in maintaining race- and gender-conscious programs, such as MBE and WBE programs, and inform how those programs may be structured to address identified disparities.

Key Terms:

  • Compelling Governmental Interest: The initial burden government organizations must establish by showing evidence of contracting discrimination that supports the use of race- and gender conscious measures.
  • Relevant Geographic Market Area (RGMA): The area where the majority of a government's dollars are spent. The City spends a majority (75% or more) of its dollars within Hamilton County, making Hamilton County the City's RGMA.