Gender earnings gaps in Hong Kong: Empirical evidence from across the earnings distribution in 2006

This paper analyzes gender earnings gaps in Hong Kong using the 2006 by-census data. To explore the sources of gender earnings gaps, we decompose the gaps using the method proposed by Machado and Mata (2005). We have three major findings. First, gender earnings gaps are larger both in lower positions and in higher positions in the earnings distribution. Both the “glass ceiling effect” and the “sticky floor effect” exist in Hong Kong. Second, gender earnings gaps in higher positions are much explained by gender differentials in productivity-related characteristics; however, gender earnings gaps in lower positions are barely explained by these characteristics. Third, the effect of occupational segregation on gender earnings gaps depends on specific positions in the earnings distribution. In lower positions, occupational segregation is not a big problem and has little impact on gender earnings gaps; in higher positions, however, occupational segregation favors male workers and enlarges gender earnings gaps.

Research Highlights► We analyze gender earnings gaps in Hong Kong using the 2006 by-census data. ► Gaps in higher positions are explained by gender differentials in characteristics. ► Gaps in lower positions are barely explained by such differentials. ► The effect of occupational segregation on the gaps varies with different positions.