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Income inequality affect young people social mobility, says a researcher

出自香港新聞網 - 樹仁新傳系學生實習習作

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Reported by Wong Wing Lam, 29th January, 2019

While young people want to have better living standard, the Hong Kong economic condition is not able for them to do so, there are many difficulties obstruct them, said a researcher.

Income inequality and high house price is some of the critical issues that affect young people move up the social ladder, said Alvin Cheung, the Senior Researcher of Our Hong Kong Foundation at Shue Yan University weekly forum.

“Most of the developed countries with lower income inequality have higher earning mobility across generations,” Cheung said. However, Hong Kong’s Gini coefficient is around 0.5 which is quite serious. Therefore, Hong Kong’s earning mobility is low.

From previous research, it is a fact that children from disadvantaged families struggle to move up the ladder. Cheung said, parents with higher education can lead to better learning environment for their children, so children will be well developed.

Now teenagers facing a problem that they cannot change their living standards by themselves, since families conditions affected them a lot.

Moreover, the wage growth of university graduates across generations is decreasing. It is one of the important issues that is an obstacle make teenagers difficult to move up the ladder. Hence they have heavy burden in their living.

“House price is extremely high that only a few people can afford,” Cheung said. As only the top 25% of households can afford the Hong Kong house price, and their monthly wages is at least $40000. Thus, university graduates earn with normally less than $20000 a month are impossible to buy a house. --165009 2019年1月29日 (二) 16:47 (CST)

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