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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?
Language: English
Authors: Qing Wu (ORCID 0000-0001-5073-8845), Xiaoyan Cheng (ORCID 0009-0001-1825-6720), Wenke Wang (ORCID 0009-0003-5803-0835), Chuanyi Wang (ORCID 0000-0002-3331-4845)
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
FullText Text:
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  Data: Employment Skills Demand and Skill Premiums: What Engineering Graduates Does the Market Require?
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  Data: English
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  Data: <searchLink fieldCode="AR" term="%22Qing+Wu%22">Qing Wu</searchLink> (ORCID <externalLink term="https://orcid.org/0000-0001-5073-8845">0000-0001-5073-8845</externalLink>)<br /><searchLink fieldCode="AR" term="%22Xiaoyan+Cheng%22">Xiaoyan Cheng</searchLink> (ORCID <externalLink term="https://orcid.org/0009-0001-1825-6720">0009-0001-1825-6720</externalLink>)<br /><searchLink fieldCode="AR" term="%22Wenke+Wang%22">Wenke Wang</searchLink> (ORCID <externalLink term="https://orcid.org/0009-0003-5803-0835">0009-0003-5803-0835</externalLink>)<br /><searchLink fieldCode="AR" term="%22Chuanyi+Wang%22">Chuanyi Wang</searchLink> (ORCID <externalLink term="https://orcid.org/0000-0002-3331-4845">0000-0002-3331-4845</externalLink>)
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  Data: <searchLink fieldCode="SO" term="%22European+Journal+of+Education%22"><i>European Journal of Education</i></searchLink>. 2025 60(3).
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  Data: 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
– Name: PeerReviewed
  Label: Peer Reviewed
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  Data: Y
– Name: Pages
  Label: Page Count
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  Data: 17
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  Label: Publication Date
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  Data: 2025
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  Data: Journal Articles<br />Reports - Evaluative
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  Data: <searchLink fieldCode="EL" term="%22Higher+Education%22">Higher Education</searchLink><br /><searchLink fieldCode="EL" term="%22Postsecondary+Education%22">Postsecondary Education</searchLink>
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  Label: Descriptors
  Group: Su
  Data: <searchLink fieldCode="DE" term="%22Employment+Potential%22">Employment Potential</searchLink><br /><searchLink fieldCode="DE" term="%22Job+Skills%22">Job Skills</searchLink><br /><searchLink fieldCode="DE" term="%22Engineering+Education%22">Engineering Education</searchLink><br /><searchLink fieldCode="DE" term="%22College+Graduates%22">College Graduates</searchLink><br /><searchLink fieldCode="DE" term="%22Education+Work+Relationship%22">Education Work Relationship</searchLink><br /><searchLink fieldCode="DE" term="%22Industry%22">Industry</searchLink><br /><searchLink fieldCode="DE" term="%22Salaries%22">Salaries</searchLink><br /><searchLink fieldCode="DE" term="%22Skilled+Workers%22">Skilled Workers</searchLink><br /><searchLink fieldCode="DE" term="%22Graduate+Study%22">Graduate Study</searchLink><br /><searchLink fieldCode="DE" term="%22Foreign+Countries%22">Foreign Countries</searchLink><br /><searchLink fieldCode="DE" term="%22School+Business+Relationship%22">School Business Relationship</searchLink><br /><searchLink fieldCode="DE" term="%22Labor+Force+Development%22">Labor Force Development</searchLink><br /><searchLink fieldCode="DE" term="%22Engineering%22">Engineering</searchLink><br /><searchLink fieldCode="DE" term="%22Technical+Occupations%22">Technical Occupations</searchLink>
– Name: Subject
  Label: Geographic Terms
  Group: Su
  Data: <searchLink fieldCode="DE" term="%22China%22">China</searchLink>
– Name: DOI
  Label: DOI
  Group: ID
  Data: 10.1111/ejed.70195
– Name: ISSN
  Label: ISSN
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  Data: 0141-8211<br />1465-3435
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: 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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  Data: 2025
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  Data: EJ1481961
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      – Type: doi
        Value: 10.1111/ejed.70195
    Languages:
      – Text: English
    PhysicalDescription:
      Pagination:
        PageCount: 17
    Subjects:
      – SubjectFull: Employment Potential
        Type: general
      – SubjectFull: Job Skills
        Type: general
      – SubjectFull: Engineering Education
        Type: general
      – SubjectFull: College Graduates
        Type: general
      – SubjectFull: Education Work Relationship
        Type: general
      – SubjectFull: Industry
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      – SubjectFull: Salaries
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      – SubjectFull: Skilled Workers
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      – SubjectFull: Graduate Study
        Type: general
      – SubjectFull: Foreign Countries
        Type: general
      – SubjectFull: School Business Relationship
        Type: general
      – SubjectFull: Labor Force Development
        Type: general
      – SubjectFull: Engineering
        Type: general
      – SubjectFull: Technical Occupations
        Type: general
      – SubjectFull: China
        Type: general
    Titles:
      – TitleFull: Employment Skills Demand and Skill Premiums: What Engineering Graduates Does the Market Require?
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            NameFull: Qing Wu
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            NameFull: Xiaoyan Cheng
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            NameFull: Wenke Wang
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              Y: 2025
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