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Measuring Segregation on Small Units : A Partial Identification Analysis

  • Xavier d'Haultfoeuille



  • Roland Rathelot



We consider the issue of measuring segregation in a population of small units, considering establishments in our application. Each establishment may have a different probability to hire an individual from the minority group. We define segregation indices as inequality indices on these unobserved, random probabilities. Because these probabilities are measured with error by proportions, standard estimators are inconsistent. We model this problem as a nonparametric binomial mixture. Under this testable assumption and conditions satisfied by standard segregation indices, such indices are partially identified and sharp bounds can be easily obtained by an optimization over a low dimensional space. We also develop bootstrap confidence intervals and a test of the binomial mixture model. Finally, we apply our method to measure the segregation of foreigners in small French firms.

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Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2011-18.

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Length: 34
Date of creation: May 2011
Date of revision:
Handle: RePEc:crs:wpaper:2011-18
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  1. S. Iranzo & F. Schivardi & E. Tosetti, 2006. "Skill dispersion and firm productivity: an analysis with employer-employee matched data," Working Paper CRENoS 200617, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  2. Roland RATHELOT, 2011. "Measuring Segregation when Units are Small : A Parametric Approach," Working Papers 2011-06, Centre de Recherche en Economie et Statistique.
  3. Kenneth R Troske & William J Carrington, 1996. "Sex Segregation in U.S. Manufacturing," Working Papers 96-4, Center for Economic Studies, U.S. Census Bureau.
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  11. Bryan S. Graham & Guido W. Imbens & Geert Ridder, 2010. "Measuring the Effects of Segregation in the Presence of Social Spillovers: A Nonparametric Approach," NBER Working Papers 16499, National Bureau of Economic Research, Inc.
  12. Kasy, Maximilian, 2015. "Identification in a model of sorting with social externalities and the causes of urban segregation," Journal of Urban Economics, Elsevier, vol. 85(C), pages 16-33.
  13. Söderström, Martin & Uusitalo, Roope, 2005. "School choice and segregation: evidence from an admission reform," Working Paper Series 2005:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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  17. Donald W. K. Andrews & Sukjin Han, 2009. "Invalidity of the bootstrap and the m out of n bootstrap for confidence interval endpoints defined by moment inequalities," Econometrics Journal, Royal Economic Society, vol. 12(s1), pages S172-S199, 01.
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