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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
    DOI: 10.1086/323933
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    References listed on IDEAS

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    1. Borjas, George J. & Freeman, Richard B. (ed.), 1992. "Immigration and the Work Force," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226066332, June.
    2. George J. Borjas, 2021. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 2, pages 3-29, World Scientific Publishing Co. Pte. Ltd..
    3. Blau, Francine D & Kahn, Lawrence M, 1997. "Swimming Upstream: Trends in the Gender Wage Differential in 1980s," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 1-42, January.
    4. George J. Borjas & Richard B. Freeman, 1992. "Immigration and the Work Force: Economic Consequences for the United States and Source Areas," NBER Books, National Bureau of Economic Research, Inc, number borj92-1.
    5. Unknown, 1986. "Letters," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 1(4), pages 1-9.
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    Citations

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    Cited by:

    1. 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.
    2. Cheng, Yuk-Shing & Zhang, Hongliang, 2018. "The labor market effects of immigration on natives: Evidence from Hong Kong," China Economic Review, Elsevier, vol. 51(C), pages 257-270.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. Eva Moreno‐Galbis & Jeremy Tanguy & Ahmed Tritah & Catherine Laffineur, 2019. "Immigrants’ Wage Performance in a Routine Biased Technological Change Era: France 1994–2012," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(4), pages 623-673, October.
    8. 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.
    9. Galbis, Eva Moreno, 2020. "Differences in work conditions between natives and immigrants: preferences vs. outside employment opportunities," European Economic Review, Elsevier, vol. 130(C).
    10. repec:ebl:ecbull:v:10:y:2006:i:7:p:1-17 is not listed on IDEAS
    11. 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.
    12. 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.
    13. 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.

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