Abstract
We examined mainland Chinese immigrants’ economic integration by looking at the earnings gap between locals and immigrants (both permanent and newly arrived) during and after the period of the Hong Kong handover from 1991 to 2016. During this period, Hong Kong experienced a further process of deindustrialization and an increased connection with mainland China. Using 5% Hong Kong population census/by-census data (1991-2016), we found that although mainland Chinese immigrants with college or above education still earned less than their local counterparts throughout the years, the income gap rapidly narrowed and their income levels converged in the more recent period. Meanwhile, the gap for those with high school degrees or below only slightly narrowed over time. Moreover, for those with high school degrees or below, the income gap between the permanent immigrants and the newly arrived ones remained constant over time, while a converging trend was observed among those with college or above degrees. Our findings suggest that immigrant economic integration may be accelerated when the socioeconomic linkage is closer between the origins and destination of migration, although some groups may benefit more than others.