2009-2010 Learning Economics through current issues (4) Income Inequality in Hong Kong Source 1 金融海嘯影響本港經濟,香港社會服務聯會(社聯)分析發現,本港今年上半年有近 124 萬 人生活於低收入家庭內,即每六名香港人中便有一人為窮人,而青年貧窮率亦由 99 年的 15.4%升至今年上半年的 20%,升幅近三成。 社聯早前分析政府數據發現,在 89 年至 09 年期間,本港高收入家庭入息中位數升幅達 1.5 倍,但低收入家庭入息中位數的升幅少於 1 倍。高收入群組與低收入群組的入息中位 數比例,由 20 年前的 2.46 倍升至今年上半年的 3.6 倍。社聯業務總監蔡海偉指,市民入 息因經濟衰退下降,但高收入群組在經濟復甦後見反彈,惟低收入群組則不然,導致貧富 懸殊加劇。 蔡海偉認為,青年貧窮問題惡化原因有三。首先,由於近年青少年多接受專上教育,其就 職年齡因而延遲,令整體家庭收入減少。其次,青年的失業率近年急增。最後,由於大部 份青年的父母多已步入中年,而中年人士的貧窮問題近年亦趨嚴重,帶動青年貧窮率上 升。蔡警告,貧窮阻礙青年進修及學習機會,窒礙青年人發展,令年輕一輩以至香港整體 競爭力被削。 節錄自: 「6 個港人 1 個貧 10 年新高」 ,香港經濟日報,2009 年 9 月 28 日。 「港貧窮人口高達 123 萬 貧富日益懸殊 社聯促撥 17 億扶貧」,星島日報,2009 年 9 月 28 日。 「2009 年最新貧窮及失業數據分析」香港社會服務聯會 Learning Economics through current issues/2009-2010/Income Inequality Page 1 of 9 Source 2:Poverty Population in Hong Kong (Thousands) (99-first half of 09) Poverty Rate Poverty Population (thousands) Poverty Population Poverty Rate Source: 2009 updated poverty and unemployment data analysis, The Hong Kong Council of Social Service Note: Poverty population refers to the population living in a low income household. Low income household is categorized by the household size and it refers to the household whose income is less or equal to the half of the median monthly domestic household income of the same size in Hong Kong. Half of the median monthly domestic household incomes of the corresponding household size of the first half of 2009 are: single-member household, HK$6,750 for a two-member household, HK$9,150 for a three-member household and HK$12,650 for household with four or more members. Source 3:The median monthly income between High income households and low income households (89-first half of 09) median household income of high income households median household income of low income households Source: 2009 updated poverty and unemployment data analysis, The Hong Kong Council of Social Service Learning Economics through current issues/2009-2010/Income Inequality Page 2 of 9 Questions for Discussion: 1. With reference to Source 3, can you describe the trend of monthly incomes between high income households and low income households from 1989 to 2009? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 2. What kind of social phenomenon implied in Q.1? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 3. Apart from comparing the median monthly incomes between high income households and low income households, are there any other references measuring the income inequality that you know? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 4. Visit the website of Census and Statistical Department and search the Gini coefficient of Hong Kong between 1989 and 2009. Explain whether the change in index between these periods correlate to your conclusion drawn in Q.2. 1991 1996 2001 2006 ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 5. Apart from labour income, what kind of return can also be regarded as income? Explain. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Learning Economics through current issues/2009-2010/Income Inequality Page 3 of 9 6. Why are there income differentials among different people? Explain from economics perspective. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 7. Chua Hoi-wai pointed out that, during economic downturn, people’s income would decrease. However, economic recovery can only benefit those at the top end of the salary scale but not the grass roots, which widens the income gap between the rich and the poor. Explain his view with reference to Source 3. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 8. Why the low income households cannot enjoy the fruit from economic recovery? Explain with reference to Q5. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 9. Suggest two industries which pay relatively low wage. Do they have anything in common? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Learning Economics through current issues/2009-2010/Income Inequality Page 4 of 9 10. Some people worry that intergenerational poverty would easily happen in low income families. Explain their concern. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 11. According to Chua Hoi-wai, what factors lead to the deterioration of youth poverty in Hong Kong? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 12. Refer to the factors mentioned above, which of them would cause a short-term effect on Hong Kong? Which of them would cause a long-term effect on Hong Kong’s future development? Explain. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Learning Economics through current issues/2009-2010/Income Inequality Page 5 of 9 13. Can you suggest some possible ways to alleviate the youth unemployment problem in Hong Kong? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Extended Questions We are going to discuss the effects of passing the minimum wage law on society from efficiency and equity perspectives in Q. 14 and Q.15. For more able students, teacher can refer to Q.14; for students need more guidance, teacher can refer to Q.15. 14. Many people called on the government to pass the minimum wage which aims at protecting the low income households. Do you agree? Explain your answer from economics perspective. ___________________________________________________________________________ ___________________________________________________________________________ 15. Many people called on the government to pass the minimum wage law which aims at protecting the low income households. (i) Explain why the minimum wage law can protect the low income group. ___________________________________________________________________________ ___________________________________________________________________________ (ii) With the aid of a Demand and Supply diagram, explain how the minimum wage law affects market condition. (hints: students can focus their analysis on the effect on equilibrium condition and efficiency) _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ Learning Economics through current issues/2009-2010/Income Inequality Page 6 of 9 (iii) With reference to the above analysis, do you think the minimum wage law can narrow the income disparity? Explain. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ (iv) Do you think passing the minimum wage law is favourable to Hong Kong? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 16. Do you think adopting the practice of mainland in late 1950s by paying a uniform wage to all workers regardless of their differences in ability and the job nature is the best way to alleviate the problem of income disparity in Hong Kong? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Learning Economics through current issues/2009-2010/Income Inequality Page 7 of 9 Report: (1) Students can prepare an essay based on the discussion in extended part. (2) This worksheet provides a framework for student to analyze a social issue with reference to authentic data. After finishing the discussion on this worksheet, students are encouraged to use other set of data/information to discuss some current issue. Apart from comparing the income among different income group, what other set(s) of economic data can also be adopted to analyze the current economic/social situation? Search the data from the website of C&SD and discuss in detail. Learning Economics through current issues/2009-2010/Income Inequality Page 8 of 9 Reference: 1. Curriculum Development Institute (2009). Efficiency, Equity and Role of Government. Hong Kong: Curriculum Development Institute. http://cd1.edb.hkedcity.net/cd/pshe/resources/econ_income_inequality/Chinese%20Version/in dex_c.htm 2. Video Resources for Economics: Income Inequality. Hong Kong: Curriculum Development Institute. http://cd1.edb.hkedcity.net/cd/pshe/resources/econ_video/index.htm 3. 2006 By-census, Thematic Report: Household Income Distribution in Hong Kong, Census and Statistics Department, HKSAR http://www.bycensus2006.gov.hk/FileManager/EN/Content_962/06bc_hhinc.pdf 4. Database on Particular Policy Issues- Proposal for a minimum wage in Hong Kong http://www.legco.gov.hk/database/english/data_mp/mp-min-wage.htm 5. 2009 updated poverty and unemployment data analysis, The Hong Kong Council of Social Service http://www.hkcss.org.hk/cm/cc/press/documents/2009poverty.doc Learning Economics through current issues/2009-2010/Income Inequality Page 9 of 9