Horizontal Stratification among University Graduates in Hong Kong: A Dynamic Analysis Using Census Data

Theodore P. Gerber, University of Wisconsin at Madison
Sin Yi Cheung, University of Birmingham

“Horizontal stratification” refers to systematic differences in labor market outcomes experienced by individuals with the same level of education based on the type of degrees they obtain. We analyze two aspects of horizontal educational among university graduates in Hong Kong: specialization of study and locality of institution (foreign vs. local institutions). Using micro-sample Hong Kong Census data we examine trends in the choice of field and in locality of study. Log-linear models reveal increasing gender differences in field of study over time. Next, we estimate earnings models with full and partial proportionality constraints on the effects of specialization and locality in order to see whether their magnitude and/or pattern have changed over time. Specialty became a more important source of earnings differentials among both male and female university graduates in Hong Kong between 1995 and 2000, which we attribute to the increase in supply of graduates.