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Measuring Income Segregation
1 : Ben-Gurion University of the Negev
2 : Universidad del Pais Vasco
We provide an axiomatic characterization of an income segregation index in school districts. The main axiom requires an intuitive decomposition by subdistricts into within-district and between-district terms. We show that this axiom, along with other standard requirements uniquely (up to multiplication by a positive constant) characterizes the index given by the inequality between the districts' schools as measured by Theil's second measure of income inequality.
