Measuring discrimination using principles of stochastic dominance

This note develops a new approach to measuring discrimination. A partial ordering of discrimination patterns is proposed that is consistent with the properties of second-degree stochastic dominance (SSD), which are related to changes in the distributions of either the reference (advantaged) or comparison (disadvantaged) group, while keeping the other group's distribution unchanged. Furthermore, a corresponding summary index is derived. This index provides a complete ordering to rank discrimination patterns and also satisfies the principles of SSD.