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Bio-Ecological Diversity vs. Socio-Economic Diversity: A Comparison of Existing Measures

Author

Listed:
  • Carole Maignan

    (Fondazione Eni Enrico Mattei)

  • Gianmarco Ottaviano

    (Università di Bologna, CEPR London and Fondazione Eni Enrico Mattei)

  • Dino Pinelli

    (Fondazione Eni Enrico Mattei)

  • Francesco Rullani

    (Fondazione Eni Enrico Mattei)

Abstract

This paper aims to enrich the standard toolbox for measuring diversity in economics. In so doing, we compare the indicators of diversity used by economists with those used by biologists and ecologists. Ecologists and biologists are concerned about biodiversity: the diversity of organisms that inhabit a given area. Concepts of species diversity such as alpha (diversity within community), beta (diversity across communities) and gamma (diversity due to differences among samples when they are combined into a single sample) have been developed (Whittaker, 1960). Biodiversity is more complex than just the species that are present, it includes species richness and species evenness. Those various aspects of diversity are measured by biodiversity indices such as Simpson’s Diversity Indices, Species Richness Index, Shannon Weaver Diversity Indices, Patil and Taillie Index, Modified Hill’s Ratio. In economics, diversity measures are multi-faceted ranging from inequality (Lorenz curve, Gini coefficient, quintile distribution), to polarisation (Esteban and Ray, 1994; Wolfon, 1994, D’Ambrosio (2001)) and heterogeneity (Alesina, Baqir and Hoxby, 2000). We propose an interdisciplinary comparison between indicators. We review their theoretical background and applications. We provide an assessment of their possible use according to their specific properties.

Suggested Citation

  • Carole Maignan & Gianmarco Ottaviano & Dino Pinelli & Francesco Rullani, 2003. "Bio-Ecological Diversity vs. Socio-Economic Diversity: A Comparison of Existing Measures," Working Papers 2003.13, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2003.13
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    1. Alberto Alesina & Eliana La Ferrara, 2000. "Participation in Heterogeneous Communities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 847-904.
    2. Alberto Alesina & Reza Baqir & Caroline Hoxby, 2004. "Political Jurisdictions in Heterogeneous Communities," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 348-396, April.
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    Cited by:

    1. Gianmarco I.P. Ottaviano & Giovanni Peri, 2021. "The economic value of cultural diversity: evidence from US cities," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 7, pages 187-222, World Scientific Publishing Co. Pte. Ltd..
    2. Pierpaolo Parrotta & Dario Pozzoli & Mariola Pytlikova, 2014. "The nexus between labor diversity and firm’s innovation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(2), pages 303-364, April.
    3. Nocco, Antonella & Ottaviano, Gianmarco I.P. & Salto, Matteo, 2017. "Monopolistic competition and optimum product selection: Why and how heterogeneity matters," Research in Economics, Elsevier, vol. 71(4), pages 704-717.
    4. Errico, Lucia & Rondinella, Sandro & Trivieri, Francesco, 2024. "Diversity in banking and new firm formation. Insights from the Italian local credit markets," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 1095-1109.
    5. Richard Stedman & Mike Patriquin & John Parkins, 2012. "Dependence, diversity, and the well-being of rural community: building on the Freudenburg legacy," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 2(1), pages 28-38, March.
    6. Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2014. "Labor diversity and firm productivity," European Economic Review, Elsevier, vol. 66(C), pages 144-179.
    7. Ottaviano, Gianmarco I.P., 2012. "Agglomeration, trade and selection," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 987-997.
    8. van den Bergh, Jeroen C.J.M., 2008. "Optimal diversity: Increasing returns versus recombinant innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 565-580, December.
    9. Aisling J. Daly & Jan M. Baetens & Bernard De Baets, 2018. "Ecological Diversity: Measuring the Unmeasurable," Mathematics, MDPI, vol. 6(7), pages 1-28, July.
    10. Chulin Li & Guang-Zhen Sun, 2006. "Diversity Of Specialization Patterns, Schur Convexity And Transference: A Note On The Measurement Of The Division Of Labor," Division of Labor & Transaction Costs (DLTC), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 71-80.
    11. Ottaviano, Gianmarco I. P., 2014. "Immigration, diversity and the labour market outcomes of native workers: some recent developments," LSE Research Online Documents on Economics 60444, London School of Economics and Political Science, LSE Library.
    12. Jessie Bakens & Peter Nijkamp, 2013. "Immigrant Heterogeneity and Urban Development: A Conceptual Analysis," Advances in Spatial Science, in: Riccardo Crescenzi & Marco Percoco (ed.), Geography, Institutions and Regional Economic Performance, edition 127, pages 381-396, Springer.
    13. Dobis, Elizabeth A. & Delgado, Michael S. & Florax, Raymond J.G.M & Mulder, Peter, 2015. "The Significance of Urban Hierarchy in Explaining Population Dynamics in the United States," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205869, Agricultural and Applied Economics Association.
    14. Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2010. "Does Labor Diversity Affect Firm Productivity?," Working Papers 10-12, University of Aarhus, Aarhus School of Business, Department of Economics.
    15. Bakens, J. & Nijkamp, P., 2011. "Lessons from migration impact analysis," Serie Research Memoranda 0022, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    16. van den Heuvel, Stijn T.A. & van den Bergh, Jeroen C.J.M., 2009. "Multilevel assessment of diversity, innovation and selection in the solar photovoltaic industry," Structural Change and Economic Dynamics, Elsevier, vol. 20(1), pages 50-60, March.
    17. Ratna, Nazmun N. & Quentin Grafton, R. & Kompas, Tom, 2009. "Is diversity bad for economic growth?: Evidence from state-level data in the US," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(6), pages 859-870, December.

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    More about this item

    Keywords

    Diversity; Growth; Knowledge;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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