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Earnings Divergence of Immigrants

Author

Listed:
  • Kit-Chun Lam

    (Hong Kong Baptist University)

  • Pak-Wai Liu

    (Chinese University of Hong Kong)

Abstract

From 1981 to 1991 the mean earnings of immigrants fell further behind those of natives in Hong Kong, with the earnings gap widening from 11.3% to 25.5%. Earnings divergence of this magnitude is rather unusual among countries that receive many immigrants. We show that earnings divergence in Hong Kong is mainly due to divergence between skill prices for immigrants' education and for natives' education. Intertemporal shift in the demand for skills caused by economic restructuring in Hong Kong has a differential impact not only on prices of different levels of skill, but also on prices of skills from different sources.

Suggested Citation

  • Kit-Chun Lam & Pak-Wai Liu, 2002. "Earnings Divergence of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 86-104, January.
  • Handle: RePEc:ucp:jlabec:v:20:y:2002:i:1:p:86-104
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    File URL: http://dx.doi.org/10.1086/323933
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    References listed on IDEAS

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    1. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-489, October.
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    Citations

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    Cited by:

    1. 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.
    2. Kee-Lee Chou, 2013. "Familial Effect on Child Poverty in Hong Kong Immigrant Families," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(1), pages 183-195, August.
    3. Hipólito Simón & Esteban Sanromá & Raúl Ramos, 2008. "Labour segregation and immigrant and native-born wage distributions in Spain: an analysis using matched employer–employee data," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(2), pages 135-168, June.
    4. Ge, Yuhao & Li, Hongbin & Zhang, Junsen, 2011. "Gender earnings gaps in Hong Kong: Empirical evidence from across the earnings distribution in 2006," China Economic Review, Elsevier, vol. 22(1), pages 151-164, March.
    5. Moreno-Galbis, Eva & Tritah, Ahmed, 2016. "The effects of immigration in frictional labor markets: Theory and empirical evidence from EU countries," European Economic Review, Elsevier, vol. 84(C), pages 76-98.
    6. Liu, Pak-Wai & Zhang, Junsen & Chong, Shu-Chuen, 2004. "Occupational segregation and wage differentials between natives and immigrants: evidence from Hong Kong," Journal of Development Economics, Elsevier, vol. 73(1), pages 395-413, February.
    7. Enrique Fernández-Macías & Rafael Grande & Alberto Rey Poveda & José-Ignacio Antón, 2015. "Employment and Occupational Mobility among Recently Arrived Immigrants: The Spanish Case 1997–2007," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 34(2), pages 243-277, April.
    8. repec:ebl:ecbull:v:10:y:2006:i:7:p:1-17 is not listed on IDEAS
    9. Alan T.K. Wan, 2006. "On discrimination and the status of immigrants in the Hong Kong labour market," Economics Bulletin, AccessEcon, vol. 10(7), pages 1-17.
    10. 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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