A stochastic dominance approach to the measurement of discrimination

Breton, Michel Le; Michelangeli, Alessandra; Peluso, Eugenio

doi:10.1016/j.jet.2011.05.003

Cited by 24 publications

(21 citation statements)

References 15 publications

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“…The construction of ( ) is, in the spirit of the interdistributional Lorenz curve, of the first type proposed by Butler and McDonald (1987), also called the first-order discrimination curve in the extended approach of Le Breton, Michelangeli, and Peluso (2012). This curve is a representation of the CDFs of the reference and comparison groups,…”

Section: The Ethnic Poverty Gap Curvesmentioning

confidence: 99%

“…When the poverty lines are the same levels of wealth in all countries, we call this the absolute ethnic poverty gap curve. When the poverty lines are wealth percentiles of the reference group in each country, in line with the interdistributional inequality approach (Butler and McDonald 1987;Le Breton, Michelangeli, and Peluso 2012), we call it the relative ethnic poverty gap curve.…”

Section: Introductionmentioning

confidence: 99%

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Poverty and ethnicity in Asian countries

Gradín¹

2016

The Asian ‘Poverty Miracle’

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published. AbstractThis paper compares the extent and the nature of the higher prevalence of poverty among disadvantaged ethnic groups in six Asian countries using demographic surveys. We first estimate a composite wealth index as a proxy for economic status, and analyze the magnitude of the ethnic gap in absolute and relative poverty levels across six countries and different ethnicities in those countries. Then, we use regression-based counterfactual analysis for explaining these ethnic differentials in poverty. We compare the actual differential in poverty with the gap that remains after disadvantaged ethnic groups are given the distribution of characteristics of the advantaged ones (by reweighting their densities using propensity scores). Our results show that there is a substantial cross-country variability in the extension, evolution, and nature of the ethnic poverty gap, which is as high as 50 percentage points or more in some specific cases in Nepal, Pakistan, or India. The gap in the latter country increased over the analyzed period, while it was reduced in the Philippines. Our analyses indicate that factors that contribute to ethnic disadvantaged groups being poorer are the strongly persistent high inequalities in education (e.g., India, Nepal, and Pakistan), in regional development (e.g., the Philippines) and the large urban-rural gap (e.g., Pakistan).

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Section: The Ethnic Poverty Gap Curvesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Poverty and ethnicity in Asian countries

Gradín¹

2016

The Asian ‘Poverty Miracle’

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“…9 Le Breton et al (2011) studied dominance conditions for the discrimination curve, and the relationship between PROB Y and second-order dominance for discrimination curves. In a previous, lenghtier contribution (Le Breton et al, 2008), they proposed some indices based on the area between the discrimination curve and the 45 degree line.…”

Section: Relative Distributionsmentioning

confidence: 99%

Measuring Group Disadvantage with Inter-distributional Inequality Indices: A Critical Review and Some Amendments to Existing Indices

Yalonetzky

2012

Economics

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A long literature on inter-distributional inequality (IDI) has developed statistical tools for measuring the extent of inequality between two groups (e.g. men versus women). The paper reviews some of the most prominent IDI indices proposed in the last four decades. The assessment focuses on how these indices react to inequalities that are disadvantageous to different groups, using two operationalizations of a concept of group-specific disadvantage focus (GDF). Relying on a complementary set of properties, the review also assesses whether these indices are informative about other interesting features related to IDI comparisons, chiefly distributional equality, but also absence of distributional overlap and presence of firstorder stochastic dominance. The author proposes amendments to several of these indices in order to render them in fulfillment of GDF properties and more informative on the mentioned distributional features. Special IssueThe Measurement of Inequality and Well-Being: New Perspectives JEL D30, J71

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“…Given differences in human capital, other assets, transfer eligibility, and tax burdens across population subgroups defined by race, we expect the net impact of the GR to vary by subgroup. 1 To measure the impacts we use a stochastic dominance method that Le Breton et al (2012) proposed for constructing partial discrimination orderings and apply it to data from the Current Population Survey (CPS) for [2006][2007][2008][2009][2010][2011][2012]. The orderings are derived from discrimination curves, or interdistributional Lorenz curves (Bishop et al, 2010) capturing economic advantage, which involve pairs of income distributions for minority and reference groups.…”

Section: Introductionmentioning

confidence: 99%

“…

AbstractWe gauge the impact of the Great Recession on racial and ethnic subgroups by applying a stochastic dominance method proposed by Le Breton et al (2012). The method generates a partial discrimination ordering, or alternatively, a measure of the economic advantage for one subgroup relative to another.

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confidence: 99%

The Great Recession and U.S. partial discrimination orderings by race

Bishop

Lee

Zeager

2014

Econom. bus. letters

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We gauge the impact of the Great Recession on racial and ethnic subgroups by applying a stochastic dominance method proposed by Le Breton et al. (2012). The method generates a partial discrimination ordering, or alternatively, a measure of the economic advantage for one subgroup relative to another. We apply the method to Current Population Survey data for 2006 through 2012, covering the recession years and the beginning of the recovery, and construct a comprehensive income measure that includes in-kind transfers and taxes. We find statistically significant differences in the impact of the Great Recession at the lower tails of the income distributions for blacks and Hispanics.

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A stochastic dominance approach to the measurement of discrimination

Cited by 24 publications

References 15 publications

Poverty and ethnicity in Asian countries

Poverty and ethnicity in Asian countries

Measuring Group Disadvantage with Inter-distributional Inequality Indices: A Critical Review and Some Amendments to Existing Indices

The Great Recession and U.S. partial discrimination orderings by race

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