Foreign Domestic Helpers Hiring and Women’s Labor Supply in Hong Kong

Abstract

Based on the data from Hong Kong Panel Study of Social Dynamics (HKPSSD), this article investigates the effect of hiring foreign domestic helpers (FDH) on married women’s labor supply in Hong Kong. The results show, hiring FDHs promotes female’s labor force participation in Hong Kong, increases the amount of time they spend on paid work, and reduces their share of housework. Further analysis suggests that the effects of hiring helpers vary substantially across different socioeconomic groups. The positive effect of hiring FDHs on work hours is the greatest among those who hold an upper-secondary education, live in subsidized housing, and are married to men who earn a relatively low income. These women work longer hours to meet their family’s ends. For married women of higher socioeconomic status, the effect of FDHs hiring on work time is insignificant, suggesting that their relief from housework contributes not to their market work but rather to the support for a more leisurely lifestyle.