Second‐Order Discrimination and Generalized Lorenz Dominance

13 Pages Posted: 24 Sep 2018

See all articles by Rafael Salas

Rafael Salas

Universidad Complutense de Madrid (UCM) - Department of Fundamentals of Economic Analysis I (Economic Analysis)

John A. Bishop

East Carolina University - Department of Economics

Lester A. Zeager

East Carolina University - Department of Economics

Date Written: September 2018

Abstract

We propose a definition of second‐order discrimination that does not require the reference distribution to first‐order dominate the comparison one, and allows rankings of discrimination patterns when both the reference and the comparison distributions differ. It involves comparing the probabilities that randomly selected individuals in the reference and comparison distributions belong to subgroups having the same cumulative mean income, yields orderings of distributions equivalent to those from generalized Lorenz dominance, and allows orderings of discrimination patterns, partial or complete, across pairs of distributions. We compare discrimination against U.S. seniors (inter‐distributional inequality between seniors and non‐seniors) by ethnicity.

Keywords: D31 (personal income, wealth, and their distributions), I3 (welfare, well‐being and poverty), C1 (econometric and statistical methods and methodology: general), discrimination measurement, economic advantage, generational income comparison, inter‐distributional inequality, stochastic dominance

Suggested Citation

Salas, Rafael and Bishop, John A. and Zeager, Lester, Second‐Order Discrimination and Generalized Lorenz Dominance (September 2018). Review of Income and Wealth, Vol. 64, Issue 3, pp. 563-575, 2018. Available at SSRN: https://ssrn.com/abstract=3254465 or http://dx.doi.org/10.1111/roiw.12310

Rafael Salas (Contact Author)

Universidad Complutense de Madrid (UCM) - Department of Fundamentals of Economic Analysis I (Economic Analysis) ( email )

Campus de Somosaguas
Madrid
Spain

John A. Bishop

East Carolina University - Department of Economics ( email )

Brewster Building
Greenville, NC 27858
United States
252 328 6756 (Phone)
252 328 6743 (Fax)

Lester Zeager

East Carolina University - Department of Economics ( email )

Brewster Building
Greenville, NC 27858
United States
252-328-6408 (Phone)
252-328-6743 (Fax)

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