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  • Earnings Divergence of Immigrants

Earnings Divergence of Immigrants

Kit-Chun Lam, Pak-Wai Liu

English , 2000/01 HKIAPS, Occasional Paper Series Hong Kong Institute of Asia-Pacific Studies, CUHK

Tags: Hong Kong Studies

215 x 140 mm , 40pp ISBN / ISSN : 978-962-441-104-1

  • US$4.50

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Earning Divergence of Immigrants From 1981 to 1991, the mean earnings of immigrants fell further behind natives in Hong Kong, with the earnings gap widening from 11.3 per cent to 25.5 per cent. Earnings divergence of this magnitude, as documented in this paper, is rather unusual among major recipient countries of immigration. This paper shows that earnings divergence in Hong Kong is mainly due to divergence in skill prices for education between immigrants and natives. Intertemporal shift in the demand for skills caused by economic restructuring in Hong Kong does not only have a differential impact on prices of different levels of skill, but also on prices of skills from different sources.

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