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

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  • John A. Bishop
  • Jonathan M. Lee
  • Lester A. Zeager

Abstract

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.

Suggested Citation

  • John A. Bishop & Jonathan M. Lee & Lester A. Zeager, 2014. "The Great Recession and U.S. partial discrimination orderings by race," Economics and Business Letters, Oviedo University Press, vol. 3(3), pages 146-155.
    • Handle: RePEc:ove:journl:aid:10310
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/10310
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    References listed on IDEAS

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    1. John A. Bishop & K. Victor Chow & Lester A. Zeager, 2010. "Visualizing and Testing Convergence Between Two Income Distributions," Journal of Income Distribution, Ad libros publications inc., vol. 19(1), pages 2-19, March.
    2. Jeff Larrimore & Richard V. Burkhauser & Philip Armour, 2013. "Accounting for Income Changes over the Great Recession (2007-2010) Relative to Previous Recessions: The Importance of Taxes and Transfers," NBER Working Papers 19699, National Bureau of Economic Research, Inc.
    3. Le Breton, Michel & Michelangeli, Alessandra & Peluso, Eugenio, 2012. "A stochastic dominance approach to the measurement of discrimination," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1342-1350.
    4. Butler, Richard J & McDonald, James B, 1987. "Interdistributional Income Inequality," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(1), pages 13-18, January.
    5. Philip Armour & Richard V. Burkhauser & Jeff Larrimore, 2013. "Deconstructing Income and Income Inequality Measures: A Crosswalk from Market Income to Comprehensive Income," American Economic Review, American Economic Association, vol. 103(3), pages 173-177, May.
    6. John Bishop & Andrew Grodner & Haiyong Liu & Ismael Ahamdanech-Zarco, 2014. "Subjective poverty equivalence scales for Euro Zone countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 265-278, June.
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