ABSTRACT
On the whole, Hong Kong follows the world pattern in the variation of income distribution across industries. The rapid economic growth of Hong Kong has been accompanied by a decline in income inequality. Underlying the levelling of income was the rapidly increasing demand for labour during 1961–1971 which has transformed Hong Kong from a labour-surplus to a labour-shortage economy. In spite of the wide recognition of Hong Kong’s successful growth record, little is known about the impact the rapid industrialisation has had on income distribution. An inter-industry comparison shows that commerce and services enjoy considerably higher income and wider income dispersion than manufacturing, construction and transport. Income distribution among household groups classified by activity status follows a predictable pattern. The educational level of household heads affects income distribution significantly. Having examined both employment and household characteristics, we are in a position to explain, for example, the low income and narrow dispersion of households in manufacturing.
