Screening signals or capability enhancement: The educational effect on the starting salary of engineering master's graduates

Abstract

The employment of college graduates has become a pressing social concern. Based on classical human capital theory and screening theory, this study analyzes the effects of human capital and educational background on the starting salary of engineering master's graduates. Educational background and hard engineering skills were found to have a distinct salary effect on engineering master's students; however, the salary effect of educational background was not based on the promotion of human capital development and exhibited clear characteristics of institution and specialty screening. Moreover, significant disparities exist between factors affecting starting salaries in engineering versus nonengineering roles. To enhance the attractiveness and quality of engineering master's programs, it is crucial to promote a diversified higher education system and develop market-driven talent cultivation models.