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The Inequality Between Two Distributions: Applications to the Analysis of Diversity Data

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  • Kenneth D. Mackenzie

    (University of Kansas)

Abstract

A new measure called diversity difference is proposed for the inequality of a pair of distributions. The diversity difference measure satisfies eight properties of a measure of inequality. This measure is simple to calculate and provides easily interpreted results. Existing inequality measures examine the distribution of a single variable whose data are arranged in a monotonic order. The new measure can employ multiple variables and does not require each to be monotonic but can be used if the data happen to be monotonic. The pair of distributions is useful for organizational diversity data because one of the distributions represents the actual proportions of employees in any class or set of classes and the other distribution is the benchmark or anchoring distribution. Data from the measure can be displayed in diversity difference trees for quick interpretation. The diversity difference measure can be arranged to define a Lorenz curve. An example with three classes (gender, race, and age) is employed to provide examples of the measure, the resulting Lorenz curve, and the disparity ratio.

Suggested Citation

  • Kenneth D. Mackenzie, 1999. "The Inequality Between Two Distributions: Applications to the Analysis of Diversity Data," Computational and Mathematical Organization Theory, Springer, vol. 5(1), pages 45-65, May.
    • Handle: RePEc:spr:comaot:v:5:y:1999:i:1:d:10.1023_a:1009698427007
    DOI: 10.1023/A:1009698427007
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    References listed on IDEAS

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    1. Rothschild, Michael & Stiglitz, Joseph E., 1973. "Some further results on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 188-204, April.
    2. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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    Cited by:

    1. Linda Barrington & Kenneth R. Troske, 2001. "Workforce Diversity and Productivity: An Analysis of Employer-Employee Match Data," Economics Program Working Papers 01-02, The Conference Board, Economics Program.

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