Gender earnings differentials in Hong Kong: The effect of the state, education, and employment

Systematic earnings differentials at the disadvantage of a particular group is in need of a solution. The Human Capital theory predicts a ''trickling down'' effect of education expansion on earnings equalization. Through education expansion and employment legislation, the state can reduce earnings differentials. By decomposing the determinants of earnings differentials into their ''attribute-quantity'' and ''attribute-price'' effects, the present study shows that education expansion for females has reduced gender earnings differentials, but only to a limit. With the disadvantaged ''attribute prices'' for females, the differentials would persist even if ''attribute quantities'' increase to a point of positive discrimination against males. More direct equalizing measures need to be explored. Copyright (C) 1996 Elsevier Science Ltd