Axiomatic characterisation of a multigroup headcount stratification index

Paul Allanson and Dooruj Rambaccussing

Economics Letters, 2025, vol. 255, issue C

Abstract: This paper provides an axiomatic characterisation of a multigroup index that measures between-group disparities as the average absolute difference in the probabilities that members of one group have better rather than worse outcomes compared to members of another group. The index satisfies a global between-group exchange principle under transitive ordering, with this principle playing a role in our characterisation of stratification akin to that of the Pigou-Dalton transfer principle in inequality measurement.

Keywords: Multigroup net difference index; Axiomatisation; Stratification; Exchange principle (search for similar items in EconPapers)
JEL-codes: D63 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525003787

DOI: 10.1016/j.econlet.2025.112541

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