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A couple thoughts. SJSU starting salaries might be high because of location; many of the grads will get jobs in the area, which is the Silicon Valley/Bay Area where everything is high.
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<p>You would think so, wouldn't you? But then we see the New Mexico Tech engineers making 55k. We see that the Montana Tech engineers are making nearly 50k. In many cases, this actually EXCEEDS the salaries of many Berkeley engineers. </p>
<p><a href="http://www.nmt.edu/about/facts/grad_salaries.htm%5B/url%5D">http://www.nmt.edu/about/facts/grad_salaries.htm</a>
<a href="http://www.mtech.edu/career/Grad%20Statistics.htm%5B/url%5D">http://www.mtech.edu/career/Grad%20Statistics.htm</a></p>
<p>Think about that. Berkeley is a highly ranked engineering school and is located in an expensive place. Yet here are these engineers from no-name schools and in cheap locations that are actually making highly comparable salaries to the Berkeley engineers. Heck, in some cases, they are actually making higher salaries. </p>
<p>Nor do I mean to single out Berkeley. You can check out the salaries from engineers from MIT, Stanford, Cornell, Princeton, and other elite engineering schools and you will see the same thing - the salaries are not substantially higher than what you could get from a no-name school. </p>
<p>Now, I do agree with the premise that the Berkeley engineer is more trained for the long run. Yes, that Berkeley engineer will probably rise faster and get into management quicker or be more likely to go to graduate school.</p>
<p>I also agree with the premise that going to a top-ranked school vastly increases your chances of getting into a large and famous employer. To echo what daaaad said, it is true that companies like Microsoft, Google, Yahoo, Intel, General Electric, IBM, ExxonMobil, and the like are extremely selective and tend to hire from only the top programs. </p>
<p>But then that just means that those top companies simply aren't paying all that well. After all, while these Montana Tech and New Mexico Tech engineers may not be working for the most glamorous employers in the world, somebody out there is hiring them and paying them well. Probably a lot of no-name unprestigious companies, but who cares? At least they're getting paid. </p>
<p>And that just leads to the killer questions which have no answers, questions that I have been thinking about for quite a while. They are: why don't these high-prestige companies pay higher starting salaries? And, why do engineers at these top companies continue to work for these prestigious companies even though they honestly don't pay all that well? </p>
<p>Now, you might say that maybe they're going in for the stock options. This might be true of Google, maybe. But not so much for Microsoft or Intel and certainly not for GE or ExxonMobil. Let's face it. Thos companies are so big already that they will probably never experience hypergrowth ever again, and if you don't experience hypergrowth, your stock is never really going to rise very dramatically. If you had gotten into Microsoft when it was still a startup, you'd be a very rich man right now. But getting in now, you're probably not going to get rich. </p>
<p>Furthermore, I would point to the perennial fascination that a lot of the top engineers have with management consulting and investment banking (and its cousins like asset management, sales/trading, etc.). A lot of engineers from MIT and Stanford end up taking jobs in those fields. When I asked some MIT engineers who accepted Wall Street banking offers why they did that, their answers were simple - it pays a lot better than engineering does. They had gotten offers from the top engineering companies like Microsoft and Oracle. They could have taken them. But the banks were willing to pay them better. Which again leads me to ask why don't these top engineering companies simply increase their pay? The more you pay, the less that these MIT engineers will turn you down for banking or consulting. </p>
<p>As a corollary, these issues have gotten me thinking about the entire nature of engineering education in the US. Surely we've all heard business leaders like Bill Gates and Craig Barrett (former CEO of Intel) riff about how the US needs to produce more engineers and to get more American kids to study engineering in order to meet the challenge from China and India, and how we're in a global war for brains, blah blah blah. Well, it seems to me that the most straightforward way to get more Americans to study engineering is to simply increase engineering pay. That's simple economics - the more you pay, the more you get. But they don't want to do that. These top companies aren't willing to increase their salaries and then they wonder why many top engineering students turn down their offers to become investment bankers or management consultants instead. So basically, what that means is that companies like Microsoft and Intel say they want more engineers, but they're not willing to pay to get them. </p>
<p>The truth is, if American engineers got paid 100k to start, we'd have guys coming out of the woodwork to study engineering. That would solve all of the country's engineering problems in a flash.</p>