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Examining the Factors Affecting Personal Income: An Empirical Study Based on Survey Data in Chinese Cities

Author

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  • Lihui Wang

    (Graduate School of Economics, Kobe University, Nada, Kobe 657-8501, Japan)

  • Junyi Shen

    (Research Institute for Economics and Business Administration, Kobe University, Nada, Kobe 657-8501, Japan)

Abstract

This paper empirically analyzes the factors affecting personal income in urban China using survey data of the ¡°Preference and Life Satisfaction Survey¡± conducted by the Global COE project of Osaka University from 2009 to 2013. We consider education level as an endogenous variable, and both ordinary least squares (OLS) regression and instrumental variable (IV) regression are performed. We find a number of factors, such as sex, age, education, and marriage that significantly affect personal income. In addition, differences between different occupations are also investigated.

Suggested Citation

  • Lihui Wang & Junyi Shen, 2017. "Examining the Factors Affecting Personal Income: An Empirical Study Based on Survey Data in Chinese Cities," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 12(4), pages 515-544, December.
    • Handle: RePEc:fec:journl:v:12:y:2017:i:4:p:515-544
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-006-017-0022-0
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    More about this item

    Keywords

    personal income; earning function; urban China; discrimination;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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