Analyzing the Relationship Between Family Net Income and Socio-Demographic Factors by Using a Multiple Linear Regression Analysis

Abstract

The current study conducted a thorough analysis of the complex connection between net family income and various crucial socio-demographic factors, such as educational achievement, age, self-esteem, insurance coverage, and the presence of dependents in households. The primary aim of this investigation was to identify the key factors that demonstrate a favorable and statistically significant correlation with net family income. The ability to make wise decisions is of utmost importance as it can help government officials create policies, stimulate economic growth, and improve the quality of life for people and families. Previous research has largely focused on determining the primary elements that affect individual net income, with a noticeable lack of in-depth studies into the area of family net income. As a result, the research seeks to fill this gap by examining if these recognized connections also apply to the realm of family net income. The study utilized meticulous multiple linear regression analysis as its analytical framework, adopting data from the nationally representative Longitudinal Survey of Youth. The study's results highlighted the strong positive associations between education, insurance status, and the number of dependents with net family income, while not taking into account any other factors that were studied.