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The Widening Income Dispersion in Hong Kong: 1986-2006

Author

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  • Hon-Kwong Lui

    (Lingnan University)

Abstract

This article analyzes the changes in income dispersion in Hong Kong during the period 1986-2006. The decile ratios indicate that while the income dispersion of the upper income class has widened substantially, the income dispersion of the lower income class has narrowed. Although changing industrial composition has been named as the prime suspect that caused rising income inequality, it actually helped in reducing the earnings variance slightly. Moreover, 40 per cent of the overall increase in earnings variance is due to an employment shift from low-inequality to high-inequality occupations. The increase in the supply of post-secondary and associate-degree graduates was more than offset by an increase in the demand for better educated workers. As a result, the earnings premium for more better educated workers experienced a decline.

Suggested Citation

  • Hon-Kwong Lui, 2011. "The Widening Income Dispersion in Hong Kong: 1986-2006," Journal of Income Distribution, Ad libros publications inc., vol. 20(2), pages 6-22, June.
    • Handle: RePEc:jid:journl:y:2011:v:20:i:2:p:6-22
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    File URL: http://jid.journals.yorku.ca/index.php/jid/article/view/17970
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    Cited by:

    1. Monkkonen, Paavo & Zhang, Xiaohu, 2014. "Innovative measurement of spatial segregation: Comparative evidence from Hong Kong and San Francisco," Regional Science and Urban Economics, Elsevier, vol. 47(C), pages 99-111.
    2. Charles Ka Yui Leung, 2015. "Availability, Affordability and Volatility: The Case of the Hong Kong Housing Market," International Real Estate Review, Global Social Science Institute, vol. 18(3), pages 383-428.

    More about this item

    Keywords

    income distribution; sectoral shifts; earnings premium;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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