How to measure diversity when you must

Racial/ethnic diversity has become an increasingly important variable in the social sciences. Research from multiple disciplines consistently demonstrates the tremendous impact of ethnic diversity on individuals and organizations. Investigators use a variety of measures, and their choices can affect the conclusions that can be drawn and limit the ability to compare and generalize results across studies effectively. The current article reviews 3 popular approaches to the measurement of diversity: the simplistic majority-minority approach and 2 multiple categories variants, the generalized variance and the lesser used entropy statistic. We discuss the properties of each approach and reject the majority-minority approach. We provide 5 examples using the generalized variance and entropy statistics and illustrate their versatility and flexibility. We urge investigators to adopt these multicategory measures and to use our discussion to determine which measure of diversity is most appropriate given the nature of one's data set and research question.