Income Inequality in Hong Kong S.A.R.: An Analysis Using the Gini Coefficient, Lorenz Curve, and Simpson's Paradox

This research aims to investigate the income inequality problem in Hong Kong. Apart from practical solutions, basic theories are also included. Simpson's Paradox, the Lorenz Curve, and the Gini Coefficient are the three main tools for investigating the degree of change in income inequality and adjusting for errors caused by insufficient data analysis. These researchers would use a combination of theory and real-life data to conduct an overall investigation and analysis of the income inequality problem in Hong Kong, China. The solutions suggested by the government and the other possible methods and policies could both be stated in the final part of the research. Investigating income inequality is very important since it could help scholars to develop a more mature and well-developed understanding of economic phenomena and the effective use of different economic models and theories. At the end of the research, a conclusion could be reached: Although income inequality and the Gini Coefficient are still fluctuating, noticeable improvement could still be recognised. Governments could impose policies such as progressive taxation or social welfare to improve the situation.