A stochastic dominance approach to the measurement of discrimination

Michel Le Breton,Eugenio Peluso,Alessandra Michelangeli

doi:10.1016/j.jet.2011.05.003

A stochastic dominance approach to the measurement of discrimination

Michel Le Breton, Eugenio Peluso + Show 1 more

https://doi.org/10.1016/j.jet.2011.05.003

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Journal: Journal of economic theory	Publication Date: May 18, 2011
Citations: 25

Affiliation: Toulouse School of Economics, University of Verona, University of Milano-Bicocca

#Stochastic Dominance #Generalized Lorenz Dominance + Show 8 more

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Abstract

Abstract This note suggests a bridge between stochastic dominance (Rothschild and Stiglitz, 1970 [17] , 1973 [18] ), inequality measurement (Atkinson, 1970 [1] ) and discrimination measurement (Gastwirth, 1975 [10] ). Discrimination orderings are defined and illustrated through discrimination curves, in the same spirit as stochastic dominance analysis. The main result, which links the second order discrimination curve and the Gastwirth discrimination index, also generalizes the equivalence between Generalized Lorenz dominance and second order stochastic dominance.

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