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Jurnal Ekonomi Malaysia

57 (2) 2023 135 – 147

Determinants of Graduates’ Starting Salary Using CHAID Analysis

College of Computing, Informatics and Media
Universiti Teknologi MARA (Seremban Campus)
70300 Seremban, Negeri Sembilan, MALAYSIA.

noram661@uitm.edu.my

Faculty of Business and Economics
Universiti Malaya
50603 Kuala Lumpur, MALAYSIA.

diana.abdwahab@um.edu.my

Institute of Advance Studies
Universiti Malaya
50603 Kuala Lumpur, MALAYSIA.

yzulina@um.edu.my

Ungku Aziz Centre for Development Studies
Universiti Malaya
50603 Kuala Lumpur, MALAYSIA.

rohanaj@um.edu.my

Abstract

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.

 

Keywords

academic performance; CHAID analysis; English proficiency; graduate employability; Malaysia; salary

JEL Codes

J21, J24, J31, J41, M51, M52
http://dx.doi.org/10.17576/JEM-2023-5702-10
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Bibliography

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Mohd Basir, N., Abdul Wahab, D., Zubair, Y. Z., & Jani, R. (2023). Determinants of Graduates’ Starting Salary Using CHAID Analysis. Jurnal Ekonomi Malaysia, 57(2), 135–147. http://dx.doi.org/10.17576/JEM-2023-5702-10

@article{mohdbasir2023determinants,
  title={Determinants of Graduates’ Starting Salary Using CHAID Analysis},
  author={Mohd Basir, Nora and Abdul Wahab, Diana and Zubair, Yong Zulina and Jani, Rohana},
  journal={Jurnal Ekonomi Malaysia},
  volume={57},
  number={2},
  pages={135—147},
 

year={2023},
}

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