The widening income dispersion in Hong Kong : 1986-2006
Document Type
Journal article
Source Publication
Journal of Income Distribution
Publication Date
6-1-2011
Volume
20
Issue
2
First Page
6
Last Page
22
Publisher
Ad Libros Publications, Inc.
Keywords
Earnings premium, Income distribution, Sectoral shifts
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.
Print ISSN
09266437
E-ISSN
18746322
Publisher Statement
Copyright © 2011 Ad Libros Publications, Inc
Language
English
Recommended Citation
Lui, H. K. (2011). The widening income dispersion in Hong Kong: 1986-2006. Journal of Income Distribution, 20(2), 6-22.