Put simply, effect coding allows researchers to compare groups of data to the average (mean) of the sample, as opposed to another group of data (Mayhew & Simonoff, 2015). This contrasts with indicator (dummy) coding, which uses a single group as a reference group. This is particularly useful when comparing groups of participants, separated by identity.
Using Effect Coding to Study Minoritized Populations
By: Steven Feldman
Friday, April 28, 2023