A stochastic dominance approach to the measurement of discrimination |
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| Authors: | Michel Le Breton Alessandra Michelangeli Eugenio Peluso |
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| Institution: | 1. Toulouse School of Economics, GREMAQ, IDEI and IUF, Manufacture des Tabacs, Aile Jean-Jacques Laffont 21, allée de Brienne, F-31000 Toulouse, France;2. DSGE, University of Milan-Bicocca, Piazza dell?Ateneo Nuovo 1, 20126 Milan, Italy;3. Department of Economics, University of Verona, Via dell?Università 4, 37129 Verona, Italy |
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| 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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