ABSTRACT
This chapter determines the impact on income distribution of the rapid industrialisation of Hong Kong over the period 1961–1971. Rapid industrialisation in Hong Kong that began in the mid-1950s more than trebled the per capita income between 1954 and 1971. Thus the evidence is fairly conclusive that the net effect of changes in the industrial structure of employment between 1961 and 1971 was to reduce income inequality. Changes in employment status and occupational structure have significantly affected the degree of equality. In spite of the short time span covered, there was a substantive change in the employment structure in accordance with the trend generally observed during the development process. The effects of changes in employment and wage structures, household size, and labour force participation are evaluated mainly on the basis of their relationship to income distribution observed in 1971.
