Measuring discrimination using principles of stochastic dominance

Michael Hoy, Rachel J. Huang

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

This note develops a new approach to measuring discrimination. A partial ordering of discrimination patterns is proposed that is consistent with the properties of second-degree stochastic dominance (SSD), which are related to changes in the distributions of either the reference (advantaged) or comparison (disadvantaged) group, while keeping the other group's distribution unchanged. Furthermore, a corresponding summary index is derived. This index provides a complete ordering to rank discrimination patterns and also satisfies the principles of SSD.

Original languageEnglish
Pages (from-to)39-52
Number of pages14
JournalJournal of Economic Theory
Volume167
DOIs
StatePublished - 1 Jan 2017

Keywords

  • Discrimination
  • Stochastic dominance

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