An Analysis of Household Income Determinants in Northern and Eastern China

This study examines the main determinants of household income in northern and eastern China namely Heilongjiang and Jiangsu provinces. Ordinary Least Squares (OLS) regression was used to analyze how household expenditures including entertainment, education, healthcare, and social activities, and welfare payments affected household income. The study also examines the factor that influence household income in Heilongjiang and Jiangsu provinces to draw attention to regional differences. The findings show that welfare payments raise household income in both areas. Furthermore, household expenditure on social, entertainment and education raise income considerably in Heilongjiang, while similar characteristics have less apparent in Jiangsu, an eastern province. These results highlight the significance for income-enhancing policies to account for regional differences and focus on augmenting welfare support and emphasizing the efficient management of household expenditures to maximize income growth potential.