(FORTUNE Magazine) – Here's a happy lesson in the law of supply and demand for new grads in chemical engineering: U.S. colleges awarded only 3,612 such degrees in 1991, vs. 7,685 in 1984 when the decline began. Result: Average starting salaries are now an estimated $39,367, a 44% increase, unadjusted for inflation, over what they were then. That means chemical engineers have almost caught up to MBAs with bachelor's degrees in technical subjects and one year's on-the-job experience. Traditionally MBAs' salaries rise dramatically throughout their careers, while those of chemical engineers level off. Thus it still seems probable that the new crop of engineers will have to broaden their experience if they want to keep pace with their MBA cohorts. One 1991 grad thinks she can do just that with her first job. Rosellen Chan, 21, a senior at New York City's highly respected Cooper Union, starts work in September for drugmaker Merck. Not only is her salary well above the national average, but, she says, ''at Merck I can expand beyond pure chemical engineering into other areas like marketing and research and development.'' Merck, a perennial winner in FORTUNE's annual Most Admired Corporations survey, places third among the employers that new engineers most want to work for, according to the Hanigan Consulting Group, which helps corporate clients plan on-campus recruiting. IBM was first, Procter & Gamble second. - R.T.

CHART: NOT AVAILABLE CREDIT: FORTUNE TABLE/SOURCE: COLLEGE PLACEMENT COUNCIL CAPTION: STARTING SALARIES