Asymmetric Income Segregation

22 Pages Posted: 19 May 2009 Last revised: 21 May 2009

See all articles by Chung Yim Edward Yiu

Chung Yim Edward Yiu

Chinese University of Hong Kong - Department of Geography and Resource Management

Zheng Hua Huang

Wuhan University

Yishuang Xu

the University of Hong Kong

Date Written: May 19, 2009

Abstract

Income segregation is found to be a common phenomenon, which imposes far-reaching implications on housing and social policies. However, the focus has long been on its extent rather than on its distribution. This study investigates the asymmetric relationship between household income and income segregation in Hong Kong, by studying the census data in 2001 and in 2006, compiled by the Hong Kong SAR Government. The result shows that segregation is more intense among high household income districts, which cannot be explained by the existing theories. We put forward a novel hypothesis, based on a one-sided self-reinforcing and spatial-diffusing model, which helps explain the underlying cause of asymmetric income segregation. The model is well supported by both a theoretical simulation and an empirical test.

Keywords: income segregation, household income, spatial autocorrelation, private housing market

JEL Classification: R12, R21

Suggested Citation

Yiu, Chung Yim Edward and Huang, Zheng Hua and XU, Yishuang, Asymmetric Income Segregation (May 19, 2009). Available at SSRN: https://ssrn.com/abstract=1406855 or http://dx.doi.org/10.2139/ssrn.1406855

Chung Yim Edward Yiu (Contact Author)

Chinese University of Hong Kong - Department of Geography and Resource Management ( email )

Shatin
the New Territories
Hong Kong
Hong Kong

HOME PAGE: http://www.grm.cuhk.edu.hk/eng/people/ppl/fac_YiuEdward.html

Zheng Hua Huang

Wuhan University ( email )

Wuhan, Hubei 43072
China

Yishuang XU

the University of Hong Kong ( email )

room533, knowles building
the University of Hong Kong
Hong Kong, 999999
Hong Kong

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