Determinants of Graduates’ Starting Salary Using CHAID Analysis; [Penentu Gaji Permulaan Graduan Menggunakan Analisis CHAID]

• Published in: Jurnal Ekonomi Malaysia
• Main Author: Basir N.M.; Wahab D.A.; Zubair Y.Z.; Jani R.
• Format: Article
• Language: English
• Published: Penerbit Universiti Kebangsaan Malaysia 2023
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85176776138&doi=10.17576%2fJEM-2023-5702-10&partnerID=40&md5=85e298ac4d360acee4e942524fd9b894

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. © 2023 Penerbit Universiti Kebangsaan Malaysia. All rights reserved.