How to Measure Segregation Conditional on the Distribution of Covariates

This short paper proposes a non-parametric method of accounting for the distribution of background characteristics when testing for segregation in empirical studies. It is shown and exemplified—using data on workplace segregation between immigrants and natives in Sweden—how the method can be applied to correct any measure of segregation for differences between groups in the distribution of covariates by means of simulation, and how analytical results can be used when studying segregation by means of peer group exposure.