Starting Salary Expectations

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Starting Salary Expectations

• By Jeff Kopala

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Regression Analysis

• On the expected annual starting salary of an
  eastern Illinois university student who will
  graduate with a bachelors degree in economics.

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Recent Studies Done on Starting Salary
Expectations

• Wayne Bylsma and Brenda major (1994)
• Ellen Konar and Brenda major (1984)
• Michael gasser, Nichole flint, and Rowena tan
  (2000)
• Scott Highhouse, Margeret E. Brooks-labor, lily
  Lin, and Christiane Spitzmueller

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Wayne Bylsma and Brenda Major (1994)

• Comparison group study
• This study was done to see if knowing how a
  previous genders results in a previous study
  influences the perception of a group in a
  different study.

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Ellen Konar and Brenda Major (1984)

• Gender Study
• This study was done to see what influences the
  pay difference in starting pay expectations and
  peak salary between males and females.

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Gasser, Flint and Tan (2000)

• Race, Gender, and Job Type
• This study was to identify which variables (race,
  gender, and job type) influence starting pay
  expectations, peak salary expectations and
  promotion opportunities.

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Highhouse, Brooks-Labor, Lin, Spitzmueller (2003)

• Survey Errors
• This study showed how the numbers on a
  questionnaire can persuade a persons result
  expectations

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Eastern Illinois University Study

• Three upper classman economic classes
• 27 working observations
• Nine questions on survey

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Regression variables

• Dependent Variable
• Expected starting annual salary
• Independent variables
• Age
• Business Administration Minor

• GPA
• Parental Income
• Male
• ACT
• Masters
• African
• Hispanic
• Caucasian
• Other

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First Regression

• Ysalary -4503.9 7283.0GPA 1965.1 Minor
  952Age 2679.5Pincome 6584Male 6472.7Masters
  1670ACT 34183African 25149Cauc 16023
  Hispanic 48541Other I
• R² .6723

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Problems with the regression

• Multicollinearity
• Independency

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Adjusted Regression

• Ysalary 37348 15986African 32652Other I
• R² .3824

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Any Questions?