Research

Determinants of Graduates’ Starting Salary Using CHAID Analysis

Determinants of Graduates’ Starting Salary Using CHAID Analysis

Description

This study aims to identify the factors contributing to graduates’ starting salaries.
This study aims to identify the factors contributing to graduates’ starting salaries.We used the data of 1,485 employed graduates from a Malaysian public university retrieved from a comprehensive 2018 Graduate Tracer Study by the Ministry of Higher Education Malaysia. We employed the CHAID predictive model to establish a relationship between starting salary and categorical predictor variables. We further used Chi-square statistics to determine the optimal splits. The study found that graduates’ starting salaries are influenced by job sector, English proficiency, job group, academic performance, and field of study. The findings further revealed that only 40 per cent of the graduates received a monthly starting salary of at least RM2,500. This simple model successfully captures the essential patterns and relationships in the data without being overly influenced by irrelevant details. These findings provide valuable knowledge and insights for future graduates to secure a promising career.

Author
1. Nora Mohd Basir
2. Diana Abdul Wahab
3. Yong Zulina Zubair
4. Rohana Jani
Journal
Journal Ekonomi Malaysia
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