On the Measurement of Dissimilarity and Related Orders
AbstractWe consider populations partitioned into groups, whose members are distributed across a finite number of classes such as, for instance, types of occupation, residential locations, social status of fathers, levels of education, health or income. Our aim is to assess the dissimilarity between the patterns of distributions of the different groups. These evaluations are relevant for the analysis of multi-group segregation, socioeconomic mobility, equalization of opportunity and discrimination. We conceptualize the notion of dissimilarity making use of reasonable transformations of the groups' distributions, based on sequences of transfers and exchanges of population masses across classes and/or groups. Our analysis clarifies the substantial differences underlying the concept of dissimilarity when applied to ordered or to permutable classes. In both settings, we illustrate the logical connections of dissimilarity evaluations with matrix majorization preorders, and provide equivalent implementable criteria to test unambiguous reductions in dissimilarity. Furthermore, we show that inequality evaluations can be interpreted as special cases of dissimilarity assessments and discuss relations with concepts of segregation and discrimination.
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Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 274.
Length: 56 pages
Date of creation: Oct 2012
Date of revision:
dissimilarity; matrix majorization; Zonotopes; multi-group segregation; discrimination.;
Find related papers by JEL classification:
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Econometric and Statistical Methods; Specific Distributions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-17 (All new papers)
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- Casilda Lasso de la Vega & Oscar Volij, 2013. "Segregation, Informativeness And Lorenz Dominance," Working Papers 1312, Ben-Gurion University of the Negev, Department of Economics.
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