Employment Skills Demand and Skill Premiums: What Engineering Graduates Does the Market Require?
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| Title: | Employment Skills Demand and Skill Premiums: What Engineering Graduates Does the Market Require? |
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| Language: | English |
| Authors: | Qing Wu (ORCID |
| Source: | European Journal of Education. 2025 60(3). |
| Availability: | Wiley. Available from: John Wiley & Sons, Inc. 111 River Street, Hoboken, NJ 07030. Tel: 800-835-6770; e-mail: cs-journals@wiley.com; Web site: https://www.wiley.com/en-us |
| Peer Reviewed: | Y |
| Page Count: | 17 |
| Publication Date: | 2025 |
| Document Type: | Journal Articles Reports - Evaluative |
| Education Level: | Higher Education Postsecondary Education |
| Descriptors: | Employment Potential, Job Skills, Engineering Education, College Graduates, Education Work Relationship, Industry, Salaries, Skilled Workers, Graduate Study, Foreign Countries, School Business Relationship, Labor Force Development, Engineering, Technical Occupations |
| Geographic Terms: | China |
| DOI: | 10.1111/ejed.70195 |
| ISSN: | 0141-8211 1465-3435 |
| Abstract: | This study expands the New Human Capital Theory by emphasising how the synergy of multiple skill combinations contributes to securing high-paying positions. Unlike traditional research that focuses on the wage premiums of single or paired skills, this study finds that a composite configuration of decision-making, innovation, research and development, and problem-solving is the key determinant for engineering professionals to excel in high-end roles. Industry analysis further reveals distinct skill demands across sectors. In science-based industries (e.g., biopharmaceuticals and electronics telecommunications), technological innovation and decision-making abilities are critical. In production-intensive industries (e.g., mechanical manufacturing and electrical energy), management and strategic coordination play a central role. Meanwhile, in supplier-dominated industries (e.g., construction and logistics), resource allocation and organisational capabilities are the primary drivers of salary premiums. These findings indicate that higher education should move away from a generalised training model and transition towards industry-specific skill alignment. To quantify the factors influencing salary determination, this study develops a Skill Premium Index, addressing the collinearity issues inherent in traditional regression methods and enhancing the precision of identifying core competencies for high-paying positions. Additionally, the study highlights a structural mismatch in China's state-led skill formation system, where the expansion of graduate education has outpaced the growth of high-skilled job opportunities, resulting in low employment matching rates for highly educated professionals. To resolve this challenge, engineering education should strengthen industry-academia collaboration, optimise curricular structures, adopt dual-education models and establish a comprehensive skill certification system. These measures will facilitate a deeper integration between higher education and industry demands, ultimately enhancing the labour market adaptability of engineering graduates. |
| Abstractor: | As Provided |
| Entry Date: | 2025 |
| Accession Number: | EJ1481961 |
| Database: | ERIC |
| Abstract: | This study expands the New Human Capital Theory by emphasising how the synergy of multiple skill combinations contributes to securing high-paying positions. Unlike traditional research that focuses on the wage premiums of single or paired skills, this study finds that a composite configuration of decision-making, innovation, research and development, and problem-solving is the key determinant for engineering professionals to excel in high-end roles. Industry analysis further reveals distinct skill demands across sectors. In science-based industries (e.g., biopharmaceuticals and electronics telecommunications), technological innovation and decision-making abilities are critical. In production-intensive industries (e.g., mechanical manufacturing and electrical energy), management and strategic coordination play a central role. Meanwhile, in supplier-dominated industries (e.g., construction and logistics), resource allocation and organisational capabilities are the primary drivers of salary premiums. These findings indicate that higher education should move away from a generalised training model and transition towards industry-specific skill alignment. To quantify the factors influencing salary determination, this study develops a Skill Premium Index, addressing the collinearity issues inherent in traditional regression methods and enhancing the precision of identifying core competencies for high-paying positions. Additionally, the study highlights a structural mismatch in China's state-led skill formation system, where the expansion of graduate education has outpaced the growth of high-skilled job opportunities, resulting in low employment matching rates for highly educated professionals. To resolve this challenge, engineering education should strengthen industry-academia collaboration, optimise curricular structures, adopt dual-education models and establish a comprehensive skill certification system. These measures will facilitate a deeper integration between higher education and industry demands, ultimately enhancing the labour market adaptability of engineering graduates. |
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| ISSN: | 0141-8211 1465-3435 |
| DOI: | 10.1111/ejed.70195 |
