The effect of outward processing trade on wage inequality: the Hong Kong case

• 成果类型: Article
• 署名作者: Ho, LS; Wei, XD; Wong, WC
• 署名单位: Lingnan University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2004.09.005
• 发表日期: 2005
• 页码: 241-257
• 关键词: wage inequality; outward processing trade; causality

摘要

This study uses time series analysis to investigate the impact of Hong Kong's increased outward processing trade with the Chinese Mainland on wage inequality. We found a significant positive association between outward processing trade and the wage premium of university graduates over primary school graduates and that over secondary school graduates. Moreover, a standard test showed one-way causality from outward processing trade to the widening of skill wage gap. Furthermore, the increase of outward processing trade is found to both increase the pay for well-educated people and decrease the pay for less well-educated people, thereby widening the wage gap. (c) 2004 Elsevier B.V. All rights reserved.