The Impact Of Family And School Factors On Urban Income In China

As the largest developing country, Chinese personal income and education issues arewidely concerned.However, since the difficulties in collecting data,the researchesrelated to family background and school quality are developing slowly. In order tocontributing the education economics in China, this paper studies on family andschool factors and their tendency of urban China.In the related researches,hidden abilities have always existed, for the fallacies indata and methods.Hidden abilities will cause heterogeneity, which is a very importantsource of bias in determining income and rate of return on education. Manyresearches want to solve this problem by application of advanced methods ofanalysis,while they overview the details in the sources of these hidden abilities. Theauthor of this dissertation thinks that the hidden abilities come from the factors ineducation and family before one entering the society. The author uses the detailedmicro-data of CHIP1995and CHIP2002to analyze the factors like income ofparents,occupational status,school quality,personal performance in school and soon.Regression analysis,stepwise method and relative importance analysis areconducted in the process towards the results.The results of these analysis are: parents’ income has an important positive effectto children’s income,while parent’s high status in occupation has a negative effect;thevital school factors are the quality of higher education and performance in highschool,but the quality of high school does not significantly affect urban income;thetrend of data and result,together with comparison with other countries,tell us that thelabor market and education in China has improved greatly.