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Immigrants and Earnings Inequality: Evidence from Hong Kong

  • Ou, Dongshu
  • Kondo, Ayako

Using data from 1991 to 2006 in Hong Kong, this paper documents how the distribution of workers’ earnings and the inequality of immigrants’ and natives’ earnings changed over time. We decompose earnings inequality to explore how the changes in immigrants’ share of the labor force have affected earnings inequality. We find that the increase in overall inequality can be explained by the increase in the within-group variance of natives. A nonnegligible part of the increase in inequality for women is due to the expansion of between-group variance caused by the large inflow of low-income immigrants from developing countries.

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File URL: http://mpra.ub.uni-muenchen.de/39673/1/MPRA_paper_39673.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39673.

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Date of creation: 26 Jun 2012
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Handle: RePEc:pra:mprapa:39673
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  1. Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising Wage Inequality, the Decline of Collective Bargaining, and the Gender Wage Gap," IZA Discussion Papers 4911, Institute for the Study of Labor (IZA).
  2. Wing Suen, 2000. "Estimating the effects of immigration in one city," Journal of Population Economics, Springer, vol. 13(1), pages 99-112.
  3. 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.
  4. Chung, Yue-Ping, 1996. "Gender earnings differentials in Hong Kong: The effect of the state, education, and employment," Economics of Education Review, Elsevier, vol. 15(3), pages 231-243, June.
  5. Fan, Chengze Simon & Lui, Hon-Kwong, 2003. "Structural change and the narrowing gender gap in wages: theory and evidence from Hong Kong," Labour Economics, Elsevier, vol. 10(5), pages 609-626, October.
  6. Ho, Lok Sang & Wei, Xiangdong & Wong, Wai Chung, 2005. "The effect of outward processing trade on wage inequality: the Hong Kong case," Journal of International Economics, Elsevier, vol. 67(1), pages 241-257, September.
  7. 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.
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