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Social distance between workers: An application to Italian geographic areas

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  • Conchita D'Ambrosio

Abstract

This paper is concerned with the measurement of social distance, clustering, or polarization between workers of a given society. This concept is fundamentally different from that of inequality and thus cannot be measured by any Lorenz consistent index. Similarly, it cannot be additively decomposed into within‐ and between‐group components using classical techniques. A new decomposition method is proposed and applied to Italian workers. The method provides an index that can be used both to calculate the distance between social groups classified according to worker characteristic and to track changes across time. The new method also reveals the factors that are reshaping the wage distribution and allows us to identify precisely where these effects are having their greatest impact. JEL classification: D30, D63, I32.

Suggested Citation

  • Conchita D'Ambrosio, 2001. "Social distance between workers: An application to Italian geographic areas," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(2), pages 463-486, July.
    • Handle: RePEc:bla:etrans:v:9:y:2001:i:2:p:463-486
    DOI: 10.1111/1468-0351.00084
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    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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