Go to a top-tier business college, and that MBA degree may be worth your while. For the most part, however, getting an MBA makes little financial sense anymore.
Every person has an MBA now
According to the Wall Street Journal, the early 1990s saw the rise of many part-time and executive MBA programs at lower-ranked schools, as well as online degrees. The result is that the amount of MBA degree holders in society has gone up, but the amount of jobs has not kept pace.
At the Georgetown University McDonough School of Business, a professor dr. Brooks Holtom pointed out the problem. He said: "An M.B.A. is a club that is now not exclusive. You need to not assume that this less exclusive club is going to confer the same benefits."
Taking a look at average MBA salaries
The result of this is proving to be some very costly stories of woe, particularly for those with MBAs from schools that are not top-tier. The numbers bear this out. Average pay for graduates with minimal experience (three years or less) was $53,900 in 2012, according to data from PayScale.com. That's 4.6 percent lower than it was in 2008, and at 186 of the schools PayScale examined, pay dropped a whopping 62 percent over that time span.
Why the tremendous drop? It's not simply because of the weak, recessionary economy. It's because business schools are dangling false hopes before students. Those with experience do not need degrees as much, and top-tier companies tend to recruit from only the most exceptional schools. The glut of MBAs in the U.S. doesn't help matters, regardless of a company's exclusivity, and neither does the sluggish economy that retards the number of opportunities accessible.
Aggressive MBA expansion
Business and law are cash cows for universities, but not necessarily for graduates. The prevailing advice that MBA students should heed is that unless they can gain admission to a top-10 business university, they should enter a different field. The amount of debt relative to the median salary is debatably not worth the trouble, otherwise. Learn to evaluate the career industry before you commit to bone-crushing debt.
Every person has an MBA now
According to the Wall Street Journal, the early 1990s saw the rise of many part-time and executive MBA programs at lower-ranked schools, as well as online degrees. The result is that the amount of MBA degree holders in society has gone up, but the amount of jobs has not kept pace.
At the Georgetown University McDonough School of Business, a professor dr. Brooks Holtom pointed out the problem. He said: "An M.B.A. is a club that is now not exclusive. You need to not assume that this less exclusive club is going to confer the same benefits."
Taking a look at average MBA salaries
The result of this is proving to be some very costly stories of woe, particularly for those with MBAs from schools that are not top-tier. The numbers bear this out. Average pay for graduates with minimal experience (three years or less) was $53,900 in 2012, according to data from PayScale.com. That's 4.6 percent lower than it was in 2008, and at 186 of the schools PayScale examined, pay dropped a whopping 62 percent over that time span.
Why the tremendous drop? It's not simply because of the weak, recessionary economy. It's because business schools are dangling false hopes before students. Those with experience do not need degrees as much, and top-tier companies tend to recruit from only the most exceptional schools. The glut of MBAs in the U.S. doesn't help matters, regardless of a company's exclusivity, and neither does the sluggish economy that retards the number of opportunities accessible.
Aggressive MBA expansion
Business and law are cash cows for universities, but not necessarily for graduates. The prevailing advice that MBA students should heed is that unless they can gain admission to a top-10 business university, they should enter a different field. The amount of debt relative to the median salary is debatably not worth the trouble, otherwise. Learn to evaluate the career industry before you commit to bone-crushing debt.
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