ABSTRACT
Chapter 3 elaborates on the disenchantment of the younger generations. First, inequality has grown tremendously in the last 20 years. The GDP per capita has increased by over 50 per cent, much more than the median income. In the meantime, the salaries of the educated youth have mostly stagnated while social mobility is at a low point. This confirms the fact that the educated youths did not benefit from the economic growth, and that the benefits of the growth are not equally shared among the local population. The first reason is linked to the polarization effect, which clusters employments at the bottom ends of the occupational and income distribution at the expense of the middle-ranking workers. In Hong Kong, this effect is reinforced by the influx of Mainland migrants, on average less educated than the locals, and by its global functions, which request a high number of professionals. The second reason may be linked to a crowding effect, with the presence of too many graduates in the labour market, in comparison with the number of new positions created for qualified people. In short, the chapter emphasizes that it is now necessary but not sufficient for young people to get a degree to secure a good job.
