Household Income and Education: An Empirical Research Based on CFPS

Abstract

In today's fast-paced economy, an increase in income frequently results in improved educational resources. This paper employs an OLS model to examine the relationship between household income and educational attainment. Experiments were conducted with control variables and other steps using data from the 2018 China Family Panel Survey (CFPS), and the results revealed a positive coefficient on the household income variable, providing preliminary evidence that household income has a positive effect on educational attainment, i.e., an increase in household income results in a significant increase in an individual's educational attainment. The purpose of this study is to analyse income and education levels based on individual and household data, to examine the educational base required for future social development, to lay the groundwork for future research, and to suggest that future policies should pay more attention to the distribution of educational resources, as improvements in household conditions can lead to some households falling short of predicted educational levels due to the unequal distribution of educational resources.