Hong Kong's 20th Century Wage Growth | Generated by AI
Historical Salaries in Hong Kong (20th Century)
Hong Kong’s economy evolved dramatically in the 20th century, from a colonial trading port to a manufacturing hub post-WWII, and then a financial center. Salaries were low in the early decades, reflecting labor-intensive industries and migrant workers, but rose with industrialization and economic growth. Data is sparse for the early 1900s, but improves post-1930s. Here’s a summary based on available historical records:
- 1930s (Pre-War Era): Unskilled male workers earned $15–50 per month (equivalent to about $0.50–$1.67 daily, assuming 30 days). Unskilled couples earned around $25 monthly. Skilled workers (e.g., carpenters, drivers) earned $0.80–$1.80 daily. Women, often piece-rate workers, earned $0.20–$1 daily. In 1939, general workers earned $2–$45 monthly for 10–13 hour days, with some permanent employees earning tens to hundreds of dollars plus board/lodging.
- 1950s–1960s (Post-War Industrial Boom): Average daily wage in 1958 was $5.53 (excluding benefits) or $6.41 (including benefits), translating to about $144–$167 monthly (assuming 26 working days). By the 1960s, wages rose modestly; for example, indexes show a ~15% increase in 1960. Industrial sectors like cotton spinning and garments saw wage indexes rise from 100 in 1958 to around 120–130 by 1967.
- 1980s–1990s (Shift to Services): Wages accelerated with economic liberalization. By 1985, real wages in manufacturing rose ~3%. Average monthly wages reached ~$13,706 by 1999, with sectors like finance and trade paying higher. Overall, wages grew ~180 times in nominal terms from 1961 to 1997, driven by GDP expansion.
These figures are nominal (not inflation-adjusted). Real wages improved due to low inflation in stable periods but were eroded by events like the 1950s refugee influx or 1997 Asian Financial Crisis.
Purchasing Power Parity (PPP) in Hong Kong
PPP adjusts for cost differences to compare living standards across countries. Hong Kong’s PPP has reflected its high-income status, with the HKD often undervalued against the USD in nominal terms but stronger in PPP due to efficient markets and low taxes. Historical data on PPP conversion factors (HKD per international dollar) is limited before 1960, but trends show:
- 1960s–1980s: PPP over GDP started around 3–4 HKD per international dollar in the 1960s, rising gradually as costs increased. GDP per capita PPP was low initially (~$3,000–$5,000 USD in 1960) but grew rapidly.
- 1990s: Average GDP per capita PPP was ~$31,599 USD in 1990, rising to ~$50,000 USD by late 1990s. PPP conversion factor ~4–5 HKD per international dollar.
- 2000s (for context, as data overlaps century end): PPP over GDP was 5.87–6.05 HKD per international dollar (2006–2010). GDP per capita PPP averaged ~$50,651 USD from 1990–2000.
By the end of the century, Hong Kong’s PPP-adjusted GDP per capita ranked among the world’s highest (~12th globally by 2000), indicating strong purchasing power despite high costs. For informal PPP measures (e.g., Big Mac Index as a proxy for consumer goods):
- In 1995, a Big Mac cost $9.50 HKD in Hong Kong vs. $2.32 USD in the US, implying a PPP rate of ~4.10 HKD/USD (vs. actual exchange ~7.80 HKD/USD), showing the HKD was undervalued nominally but goods were relatively affordable locally.
Cost of Coca-Cola or a Normal Street Dinner
Historical prices for specific items like Coca-Cola are scarce in Hong Kong records, as it wasn’t widely available until mid-century (introduced via US influence post-WWII, and re-entered China/HK region in 1979 after a hiatus). Street food (e.g., congee, noodles, or dim sum from hawker stalls) was a staple for workers, with prices reflecting low wages.
- Coca-Cola:
- No direct 20th-century prices for Hong Kong, but globally (as a proxy), a bottle/glass was ~$0.05 USD (equivalent to ~$0.39 HKD at 1930s exchange rates) from 1887–WWII. In Hong Kong, it was likely similar for imported bottles in urban areas.
- By late 1990s, a can/bottle cost ~$5–7 HKD in convenience stores.
- For PPP context: If using Coke as a “basket,” Hong Kong’s high costs made it relatively expensive vs. US, but affordable for middle-class (e.g., ~0.05% of monthly salary in 1990s).
- Normal Street Dinner (e.g., Rice/Noodles with Meat/Veggies):
- 1930s: Sparse data; a basic meal might cost $0.10–$0.20 (estimated from cost-of-living budgets where food was ~$5 monthly for 60 meals, or ~$0.08 per meal).
- 1950s–1960s: Meals away from home rose ~19.4% from 1958–1964. A street meal likely cost $1–2 (e.g., based on rice at $0.54/kg and fish increases of 18.5%).
- 1980s–1990s: Street food like wonton noodles or fried rice cost ~$10–20 by 1990s. “Old days” references note items like egg tarts at $5 for 3 pieces in the 1980s.
- Overall trend: Prices rose with inflation (Retail Price Index from 100 in 1947 to ~130 in 1967), but stayed low due to hawker culture until regulations in the 1990s increased costs.
Affordability: How Many Street Dinners Can an Average Worker Buy?
This calculates monthly salary divided by street dinner price (assuming one dinner = one inexpensive meal). Estimates use mid-range figures; actual varied by worker type (unskilled vs. skilled).
| Period | Avg. Monthly Salary (HKD) | Est. Street Dinner Price (HKD) | Dinners per Salary | Notes |
|---|---|---|---|---|
| 1930s | 30 (unskilled) | 0.15 (est.) | ~200 | Based on food budgets; workers could afford ~6–7/day if budgeting all on food. |
| 1950s–1960s | 150 (mid-range) | 1.50 (est.) | ~100 | From 1958 data; affordability dipped with post-war inflation but improved with wage hikes. |
| 1980s–1990s | 10,000 (est. mid-1990s) | 15 | ~667 | Higher wages boosted affordability; a worker could buy 20–25 dinners/day if all income allocated. |
Calculations: Simple division (salary / price). Real affordability was lower after essentials (e.g., in 1930s, half salary on necessities left ~100 dinners). By PPP, Hong Kong workers had better global purchasing power, but local costs reduced it (e.g., equivalent to ~400–500 USD-adjusted dinners in 1990s).
To arrive at these: For 1930s, 30 / 0.15 = 200. For 1950s–60s, 150 / 1.5 = 100. For 1980s–90s, 10,000 / 15 ≈ 667. Estimates interpolated from wage data and price indexes (e.g., food index up 11% in 1958–64).
Rent Prices
Rents were controlled post-WWII to house refugees, with public housing emerging in the 1950s. Private rents were higher in urban areas.
- 1930s: Included in cost-of-living ($10–20 monthly for food/housing/clothes combined); tenement cubicles or bedspaces cost ~$5–10/month.
- 1950s–1960s: Pre-war rentals ~$48/month (1959), rising to $50 (1964). Post-war ~$109 to $131. Resettlement/low-cost estates ~$15–$16/month. Overall average ~$50–$100 for urban households.
- 1980s–1990s: Private rents surged; by 1997 peak, average ~$10,000–15,000/month for small apartments, declining 40% post-crisis. Public housing rents remained subsidized (~$1,000–2,000).
Trend: Rents rose faster than inflation in booms (e.g., 16.4% increase 1959–1964), with yields ~3–4% by late century.
Rent-to-Salary Ratio
This ratio (monthly rent / monthly salary) measures housing affordability; higher ratios indicate burden. Hong Kong’s was high due to land scarcity, but public housing kept it lower for many (~50% of population by 2000).
| Period | Avg. Rent (HKD/month) | Avg. Salary (HKD/month) | Rent-to-Salary Ratio (%) | Notes |
|---|---|---|---|---|
| 1930s | 5–10 (est.) | 30 | 17–33 | Combined necessities; low for shared tenements. |
| 1950s–1960s | 50–100 | 150 | 33–67 | Higher for private; public resettlement ~10% ($15 rent). |
| 1980s–1990s | 5,000–10,000 (private) | 10,000–13,000 | 50–77 (private); 15–20 (public) | Peaked in 1990s boom; median public ratio 17.8% in 2000. |
Calculations: Ratio = (rent / salary) × 100. For 1930s, 7.5 / 30 = 25% avg. For 1950s–60s, 75 / 150 = 50%. For 1980s–90s, 7,500 / 11,500 ≈ 65% (private). Private ratios often exceeded 30% (global benchmark), rising to 32% by 2000 for some; public subsidies capped at ~18%.
Overall, salaries and PPP improved dramatically, but high rents and living costs meant affordability challenges persisted, especially for private housing. Data gaps exist for early decades due to limited records.