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Axiomatic characterisation of a multigroup headcount stratification index

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  • Allanson, Paul
  • Rambaccussing, Dooruj

Abstract

This paper provides an axiomatic characterisation of a multigroup index that measures between-group disparities as the average absolute difference in the probabilities that members of one group have better rather than worse outcomes compared to members of another group. The index satisfies a global between-group exchange principle under transitive ordering, with this principle playing a role in our characterisation of stratification akin to that of the Pigou-Dalton transfer principle in inequality measurement.

Suggested Citation

  • Allanson, Paul & Rambaccussing, Dooruj, 2025. "Axiomatic characterisation of a multigroup headcount stratification index," Economics Letters, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525003787
    DOI: 10.1016/j.econlet.2025.112541
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    References listed on IDEAS

    as
    1. Tugce Cuhadaroglu, 2023. "Evaluating ordinal inequalities between groups," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(1), pages 219-231, March.
    2. Magdalou, Brice, 2021. "A model of social welfare improving transfers," Journal of Economic Theory, Elsevier, vol. 196(C).
    3. Amartya K. Sen, 1997. "From Income Inequality to Economic Inequality," Southern Economic Journal, John Wiley & Sons, vol. 64(2), pages 384-401, October.
    4. Sean F. Reardon, 2009. "Measures of ordinal segregation," Research on Economic Inequality, in: Occupational and Residential Segregation, pages 129-155, Emerald Group Publishing Limited.
    5. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975.
    6. Paul Allanson, 2018. "On the Measurement of the Overall Degree of Income Stratification between Groups," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 388-405, June.
    7. Allanson, Paul, 2017. "Monitoring income-related health differences between regions in Great Britain: A new measure for ordinal health data," Social Science & Medicine, Elsevier, vol. 175(C), pages 72-80.
    8. Paul Allanson, 2022. "Ordinal health disparities between population subgroups: measurement and multivariate analysis with an application to the North-South divide in England," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(4), pages 841-860, December.
    9. Paul Allanson & Richard Cookson, 2022. "Comparing healthcare quality: A common framework for both ordinal and cardinal data with an application to primary care variation in England," Health Economics, John Wiley & Sons, Ltd., vol. 31(12), pages 2593-2608, December.
    10. Shlomo Yitzhaki & Robert I. Lerman, 1991. "Income Stratification And Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(3), pages 313-329, September.
    11. Dagum, Camilo, 1980. "Inequality Measures between Income Distributions with Applications," Econometrica, Econometric Society, vol. 48(7), pages 1791-1803, November.
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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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