Latte Index on wage inequality leaves a bitter taste for Hong Kong’s lowest paid
After comparing spending power based on the ability to buy a cup of coffee, academic calls for businesses to be more socially responsible and for higher minimum pay
The plight of the low-paid in Hong Kong has been laid bare by the Latte Index – a new indicator developed by an academic that measures how many cups of coffee the lowest paid can afford to buy.
Professor Paul Yip Siu-fai, of the University of Hong Kong’s department of social work and social administration, said the city fared poorly in his global comparison. He urged the business sector to fulfil its social responsibilities and called on the government to raise the minimum wage.
Yip used data compiled by The Wall Street Journal in 2013, which listed the price of a Starbucks grande latte in major cities.
The Latte Index for Hong Kong stood at 1.08 – meaning only 1.08 cups of latte could be bought with an hour of the city’s minimum wage, which was raised from HK$32.5 to HK$34.5 in May.
This was one of the lowest among developed cities, slightly better than Lisbon (1.05), Athens (0.85) and Beijing (0.57).