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Immigrants and Earnings Inequality: Evidence from Hong Kong

Author

Listed:
  • Ou, Dongshu
  • Kondo, Ayako

Abstract

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.

Suggested Citation

  • Ou, Dongshu & Kondo, Ayako, 2012. "Immigrants and Earnings Inequality: Evidence from Hong Kong," MPRA Paper 39673, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:39673
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    File URL: https://mpra.ub.uni-muenchen.de/39673/1/MPRA_paper_39673.pdf
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    References listed on IDEAS

    as
    1. Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," Labour Economics, Elsevier, vol. 17(5), pages 835-847, October.
    2. 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.
    3. 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.
    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. Patricia Cortés & Jessica Pan, 2013. "Outsourcing Household Production: Foreign Domestic Workers and Native Labor Supply in Hong Kong," Journal of Labor Economics, University of Chicago Press, vol. 31(2), pages 327-371.
    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. Wing Suen, 2000. "Estimating the effects of immigration in one city," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 99-112.
    8. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Earnings inequality; immigrants; Hong Kong;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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