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Measuring Segregation When Units are Small: A Parametric Approach

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  • Roland Rathelot

Abstract

This article considers the issue of measuring segregation in a population of units that contain few individuals (e.g., establishments, classrooms). When units are small, the usual segregation indices, which are based on sample proportions, are biased. We propose a parametric solution: the probability that an individual within a given unit belongs to the minority is assumed to be distributed as a mixture of Beta distributions. The model can be estimated and indices deduced. Simulations show that this new method performs well compared to existing ones, even in the case of misspecification. An application to residential segregation in France according to parents’ nationalities is then undertaken. This article has online supplementary materials.

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  • Roland Rathelot, 2012. "Measuring Segregation When Units are Small: A Parametric Approach," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(4), pages 546-553, June.
    • Handle: RePEc:taf:jnlbes:v:30:y:2012:i:4:p:546-553
    DOI: 10.1080/07350015.2012.707586
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    References listed on IDEAS

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    1. Kremer, M & Maskin, E, 1996. "Wage Inequality and Segregation by Skill," Working papers 96-23, Massachusetts Institute of Technology (MIT), Department of Economics.
    2. Rebecca Allen & Simon Burgess & Frank Windmeijer, 2009. "More Reliable Inference for Segregation Indices," The Centre for Market and Public Organisation 09/216, Department of Economics, University of Bristol, UK.
    3. Roland Rathelot, 2012. "Measuring Segregation When Units are Small: A Parametric Approach," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(4), pages 546-553, June.
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    Cited by:

    1. Glitz, Albrecht, 2014. "Ethnic segregation in Germany," Labour Economics, Elsevier, vol. 29(C), pages 28-40.
    2. Xavier D'Haultfœuille & Roland Rathelot, 2017. "Measuring segregation on small units: A partial identification analysis," Quantitative Economics, Econometric Society, vol. 8(1), pages 39-73, March.
    3. Roland Rathelot, 2012. "Measuring Segregation When Units are Small: A Parametric Approach," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(4), pages 546-553, June.
    4. Matthew Gentzkow & Jesse M. Shapiro & Matt Taddy, 2016. "Measuring Group Differences in High-Dimensional Choices: Method and Application to Congressional Speech," NBER Working Papers 22423, National Bureau of Economic Research, Inc.
    5. Rathelot, Roland, 2014. "Ethnic differentials on the labor market in the presence of asymmetric spatial sorting: Set identification and estimation," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 154-167.

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