Income Inequality and Educational Stratification: the Case of Hong Kong, 1991-2001

This paper examines the trends in the effects of family backgrounds on school enrollments and transitions in Hong Kong. Based on the 5 percent samples of the 1991 and 2001 population census data, I match the school-age children (6-19) to their parents’ background information within the same households, and focus on the effects of father’s occupation and income on children’s educational outcomes. Results show that, over the decade, the effect of father’s income on full-time enrollment has declined but the effect of father’s occupation has increased. As to school transitions, the effects of father’s occupation and income decline in transitions to higher levels of education beyond the compulsory level in 1991, but become even more important in progression to higher level of education (particularly to college) in 2001. The enlarged income inequality between 1991 and 2001 is partly owing to the rising inequality in education among the youth aged 20-29. Income inequality and educational stratification are mutually enhanced in Hong Kong.