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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.