This paper discusses a new measure of residential segregation by race that incorporates spatial proximity among neighbourhoods into the calculation of the index. The basis for the measure is the Gini index of segregation. Unlike other similar measures discussed in recent years, this measure satisfies the 'principle of transfers', is flexible enough to quantify a range of pre-specified spatial patterns of segregation and is easy to compute using spatial statistics software packages. The properties of the index are illustrated using several simple simulations and a case study of non-White-White segregation in Atlanta, Georgia. The application of the index in Atlanta suggests that spatial proximity among adjacent neighbourhoods has a large impact on overall levels of racial segregation.
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