Analysis of the Impact of Family Education Level on Household Income: A Study Based on the CHFS Database

Abstract

Education and income have long been recognized as important factors in social and individual economic development. It is widely believed that higher levels of education provide individuals with better employment opportunities, career development, and income growth prospects. Therefore, studying the changes and variations in the relationship between family education level and income is crucial for understanding socioeconomic inequality and formulating relevant policies. This paper utilizes microdata from the China Household Finance Survey and Research Center (CHFS-2019), employs the imputation method to measure family education level and total household income, and employs a multiple regression model to empirically analyze the impact of family education level on total household income. The research findings indicate a significant positive correlation between the highest educational attainment within a family and total household income, suggesting that an improvement in education level may have a positive impact on the family’s economic status. Furthermore, age exhibits a negative relationship with total household income, implying that aging may impose limitations on individual income growth. Additionally, further analysis on regional and urban-rural factors reveals that the relationship between family education level and total household income is more significant in urban areas and the eastern region.