In this chapter we begin by examining issues that arise when studying pay equity for tenure-eligible faculty. The chapter starts with a discussion of who should be included in an analysis of tenure-eligible faculty. We then turn to variable selection. What should be used as the dependent variable? What control variables should be used? As will be seen, there are control variables that should always be used in a pay equity study, and others that are a bit more controversial. Finally, data on a sample of tenure-eligible faculty are used to illustrate how the statistical methods for assessing pay equity can be applied to them.