Social Changes, Cohort Quality, and Labor Market Assimilation: Chinese Immigrants in Hong Kong, 1991-2006

Zhuoni Zhang, Hong Kong University of Science and Technology

This paper uses Hong Kong census and bi-census data between 1991 and 2006 to examine the assimilation of mainland immigrants in the labor market, focusing on employment, occupational and earnings attainment in comparison to natives. Particular attention is paid to the assimilation of the immigrants over time, and the effects of changes to the cohort quality, resulting primarily from the shift in immigration policy after Hong Kong’s return to China in 1997. Results show that newly arrived Chinese immigrants had a lower employment rate, and were trapped in elementary occupations even if they had jobs, and earned much less than the natives. As immigrants stayed longer, the gap tended to decrease. However, most immigrants were not able to reach parity to natives in terms of earnings throughout their working lives. The above pattern differs by gender. No evidence suggests significant changes in the quality of immigrant cohorts after Hong Kong’s return to China in 1997