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information flow. On the whole the density of settlement permits
easy communication about jobs. There is some geographical limita-
tion on information flows which can lead to discrepancies in wages
and employment levels between districts of Hong Kong; and it is
generally agreed that, the further one gets into the New Territories,
the more segregated is local employment from the labour market of
the urban areas. The conclusion is that Hong Kong's workforce is
extremely well-informed about even short term fluctuations in the
pattern of labour demand, both within and between industries.
Wage comparison:
It follows from the above that workers are generally well-
informed about wage levels and are able to make choices between jobs
on the basis of accurate wage comparison. However, employment con-
ditions are so variable that comparison could sometimes be very
difficult, especially when piece-rates, elaborate bonus systems and
fringe benefits make direct comparison virtually impossible.
Average daily take-home pay, weighted for some easily quantifiable
fringe benefits, could allow a degree of comparison in such cases;
but, in my opinion, the older Chinese firms in particular construct
complicated reward systems as one means of inhibiting wage comparison
with other establishments. Manipulation of piece rates, bonuses
and the like is one remaining weapon in the hands of employers faced
with a mobile labour force.
What about employers' information about wages? The usual
answer is that they pay "the going rate" which is, presumably, the
rate at which they can attract labour without stimulating a stampede.
Information about that rate would be provided by the evidence of
labour turnover in one's firm, by communication to management from
workers (perhaps through supervisors) about dissatisfaction with
present wages and, of course, by information yielded from attempts
at recruitment. This version leaves the employer entirely dependent
on his own direct market experience for information about how much
to pay his workers. There may be a number of smaller employers who
find themselves in this situation; but most larger firms have other
means of discovering "the going rate".
First, government is actively involved in publishing wage data (albeit with a lag of a few months) in the most important sectors;
it also takes the initiative in bringing employers of the same
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