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Immigration, Population Heterogeneity, And Earnings Inequality In Hong Kong

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  • KIT‐CHUN LAM
  • PAK‐WAI LIU

Abstract

This paper analyzes the heterogeneity effect of immigration on earnings in‐equality by decomposing the aggregate measure of total inequality. The analysis shows that a substantial portion of an increase in measured inequality could be due to shifts in shares of heterogeneous population groups caused by immigration policy rather than by widening earnings dispersion within these groups. The analysis is illustrated with census data of Hong Kong from 1981 to 1991. Income redistribution policy based on measured total inequality when there are shifts in population shares could be misguided.

Suggested Citation

  • Kit‐Chun Lam & Pak‐Wai Liu, 1998. "Immigration, Population Heterogeneity, And Earnings Inequality In Hong Kong," Contemporary Economic Policy, Western Economic Association International, vol. 16(3), pages 265-276, July.
    • Handle: RePEc:bla:coecpo:v:16:y:1998:i:3:p:265-276
    DOI: 10.1111/j.1465-7287.1998.tb00518.x
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    References listed on IDEAS

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    Cited by:

    1. Charles Ka Yui Leung & Joe Cho Yiu Ng & Edward Tang, 2020. "Why is the Hong Kong Housing Market Unaffordable? Some Stylized Facts and Estimations," Globalization Institute Working Papers 380, Federal Reserve Bank of Dallas.
    2. Kee-Lee Chou & Kelvin Cheung & Maggie Lau & Tony Sin, 2014. "Trends in Child Poverty in Hong Kong Immigrant Families," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(3), pages 811-825, July.
    3. Kelvin Chi-Kin Cheung & Wai-Sum Chan & Kee-Lee Chou, 2019. "Material Deprivation and Working Poor in Hong Kong," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(1), pages 39-66, August.
    4. Chong, Terence Tai Leung & Ka, Yiu Tung, 2019. "Forecasting Income Inequality with Demographic Projections," MPRA Paper 99160, University Library of Munich, Germany.
    5. Kelvin Chi-Kin Cheung & Kee-Lee Chou, 2016. "Working Poor in Hong Kong," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(1), pages 317-335, October.

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