Policy Effects of the Statutory Minimum Wage in Hong Kong: Evidence from the General Household Survey from 2011 to 2019

Xinmiao SONG; Ngai PUN; Zhuoni ZHANG; Han ZHANG

doi:10.1017/S1474746425101127

Policy Effects of the Statutory Minimum Wage in Hong Kong: Evidence from the General Household Survey from 2011 to 2019

Xinmiao SONG
, Ngai PUN
, Zhuoni ZHANG
, Han ZHANG^*

^*Corresponding author for this work

Research output: Journal Publications › Journal Article (refereed) › peer-review

Abstract

This article examines the policy effects of Hong Kong’s Statutory Minimum Wage (SMW) on underemployment, working hours, and wages. Using a Difference-in-Differences methodology on General Household Survey data (2011–2019), we assess five SMW adjustment cycles. We define a ‘most disadvantaged’ treatment group and a ‘less disadvantaged’ group based on the concentration of minimum wage earners in their industry-occupation cell, relative to an unaffected control group. Our findings show no significant increase in underemployment or reduction in working hours for either group. Wage effects were also contained, with inconsistent direct gains for the most disadvantaged group and no evidence of significant wage spillovers for the ‘less disadvantaged’ group. These findings indicate that the SMW and its adjustments in Hong Kong did not lead to the feared wage-job trade-off constraints; instead, they highlight the need to explore policy options for appropriate SMW increases to reduce economic inequality.

Original language	English
Number of pages	17
Journal	Social Policy and Society
DOIs	https://doi.org/10.1017/S1474746425101127
Publication status	E-pub ahead of print - 23 Dec 2025

Bibliographical note

The authors would also like to thank the three anonymous reviewers for their comments and suggestions on this article and Dr. Duoduo Xu for providing access to the HKGHS data.

Publisher Copyright:
© The Author(s), 2025. Published by Cambridge University Press in association with Social Policy Association The Author(s)

Funding

The authors acknowledge the funding support received from Oxfam Hong Kong, Youth Employment and Poverty Project, Lingnan University; Guangzhou Municipal Science and Technology Bureau (Guangzhou Basic and Applied Basic Research Scheme, No. 2024A04J6375 and No. 2025A03J3490), and the State Administration of Foreign Experts Affairs, Ministry of Science and Technology, China (High-end Foreign Experts Project, No. G2023030045L).

Keywords

Hong Kong
hourly wage
minimum wage
underemployment
working hours

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1017/S1474746425101127

https://www.cambridge.org/core/product/identifier/S1474746425101127/type/journal_article

Cite this

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title = "Policy Effects of the Statutory Minimum Wage in Hong Kong: Evidence from the General Household Survey from 2011 to 2019",

abstract = "This article examines the policy effects of Hong Kong{\textquoteright}s Statutory Minimum Wage (SMW) on underemployment, working hours, and wages. Using a Difference-in-Differences methodology on General Household Survey data (2011–2019), we assess five SMW adjustment cycles. We define a {\textquoteleft}most disadvantaged{\textquoteright} treatment group and a {\textquoteleft}less disadvantaged{\textquoteright} group based on the concentration of minimum wage earners in their industry-occupation cell, relative to an unaffected control group. Our findings show no significant increase in underemployment or reduction in working hours for either group. Wage effects were also contained, with inconsistent direct gains for the most disadvantaged group and no evidence of significant wage spillovers for the {\textquoteleft}less disadvantaged{\textquoteright} group. These findings indicate that the SMW and its adjustments in Hong Kong did not lead to the feared wage-job trade-off constraints; instead, they highlight the need to explore policy options for appropriate SMW increases to reduce economic inequality.",

keywords = "Hong Kong, hourly wage, minimum wage, underemployment, working hours",

author = "Xinmiao SONG and Ngai PUN and Zhuoni ZHANG and Han ZHANG",

note = "The authors would also like to thank the three anonymous reviewers for their comments and suggestions on this article and Dr. Duoduo Xu for providing access to the HKGHS data. Publisher Copyright: {\textcopyright} The Author(s), 2025. Published by Cambridge University Press in association with Social Policy Association The Author(s)",

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AU - PUN, Ngai

AU - ZHANG, Zhuoni

AU - ZHANG, Han

N1 - The authors would also like to thank the three anonymous reviewers for their comments and suggestions on this article and Dr. Duoduo Xu for providing access to the HKGHS data. Publisher Copyright: © The Author(s), 2025. Published by Cambridge University Press in association with Social Policy Association The Author(s)

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Y1 - 2025/12/23

N2 - This article examines the policy effects of Hong Kong’s Statutory Minimum Wage (SMW) on underemployment, working hours, and wages. Using a Difference-in-Differences methodology on General Household Survey data (2011–2019), we assess five SMW adjustment cycles. We define a ‘most disadvantaged’ treatment group and a ‘less disadvantaged’ group based on the concentration of minimum wage earners in their industry-occupation cell, relative to an unaffected control group. Our findings show no significant increase in underemployment or reduction in working hours for either group. Wage effects were also contained, with inconsistent direct gains for the most disadvantaged group and no evidence of significant wage spillovers for the ‘less disadvantaged’ group. These findings indicate that the SMW and its adjustments in Hong Kong did not lead to the feared wage-job trade-off constraints; instead, they highlight the need to explore policy options for appropriate SMW increases to reduce economic inequality.

AB - This article examines the policy effects of Hong Kong’s Statutory Minimum Wage (SMW) on underemployment, working hours, and wages. Using a Difference-in-Differences methodology on General Household Survey data (2011–2019), we assess five SMW adjustment cycles. We define a ‘most disadvantaged’ treatment group and a ‘less disadvantaged’ group based on the concentration of minimum wage earners in their industry-occupation cell, relative to an unaffected control group. Our findings show no significant increase in underemployment or reduction in working hours for either group. Wage effects were also contained, with inconsistent direct gains for the most disadvantaged group and no evidence of significant wage spillovers for the ‘less disadvantaged’ group. These findings indicate that the SMW and its adjustments in Hong Kong did not lead to the feared wage-job trade-off constraints; instead, they highlight the need to explore policy options for appropriate SMW increases to reduce economic inequality.

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KW - working hours

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DO - 10.1017/S1474746425101127

M3 - Journal Article (refereed)

SN - 1474-7464

JO - Social Policy and Society

JF - Social Policy and Society

ER -

Policy Effects of the Statutory Minimum Wage in Hong Kong: Evidence from the General Household Survey from 2011 to 2019

Abstract

Bibliographical note

Funding

Keywords

UN SDGs

Access to Document

Other files and links

Fingerprint

Youth Employment and Poverty: A critical investigation of young creative slashers in Hong Kong

Cite this

Policy Effects of the Statutory Minimum Wage in Hong Kong: Evidence from the General Household Survey from 2011 to 2019

Abstract

Bibliographical note

Funding

Keywords

UN SDGs

Access to Document

Other files and links

Fingerprint

Projects

Youth Employment and Poverty: A critical investigation of young creative slashers in Hong Kong

Cite this