In this chapter, we will review the different statistical methods that can be used when conducting a pay equity study for faculty and staff at an institution. The chapter begins by noting that most pay equity studies focus on internal equity as opposed to external equity. The notion of omitted variable bias is introduced to provide context for the types of measurements that can be done in a pay equity study. The chapter then delves into the specific statistical methods that can be used to measure the average unexplained pay gap between two groups of employees. The chapter also distinguishes between measuring the average and individual unexplained pay gaps. It is emphasized throughout the chapter that each method has its advantages and disadvantages for pay equity studies. Equations and figures are used to illustrate key points.