Spatial Mismatch, Different Labor Markets and Precarious Employment: The Case of Hong Kong

Abstract

Spatial mismatch theory argues that geographic barriers have significant adverse effects on (un)employment, especially with respect to disadvantaged workers. Existing debates on spatial mismatch have focused on its influence on unemployment, but few studies have paid attention to the impact of spatial factors on increasingly precarious employment in today’s labor market. Using data from four waves of the Hong Kong Panel Study of Social Dynamics (HKPSSD), the 2011 Population Census and the 2016 Population By-census, this study aims to investigate the effects of spatial mismatch on precarious employment in the low- and high-skilled labor markets in Hong Kong with multi-leveled modeling. The results suggest that with higher levels of spatial mismatch, workers in the low-skilled labor market are more likely to be in precarious employment. In the high-skilled labor market, sub-degree holders are also more likely to engage in precarious employment. Even worse, spatial mismatch in Hong Kong has deteriorated over time. Based on these results, we offer policy recommendations and show how the study of spatial mismatch can inform policymaking. Overall, we contribute to the literature by demonstrating that spatial mismatch can lead to precarious employment among employed workers and has differentiated effects on low- and high-skilled labor markets.