Go to a top-tier business university, and that MBA degree may be worth your while. For the most part, however, getting an MBA makes little financial sense anymore.
What is happening to MBAs?
There has been a massive increase in the number of people with MBAs despite the fact that there has not been a rise in jobs. The Wall Street Journal reports that this increase started in the early 1990s when many part-time and executive MBA programs started to be offered online and at lower-ranked schools.
According to professor Dr. Brooks Holtom at Georgetown University McDonough School of Business, "An M.B.A. is a club that is now not exceptional. You should not assume that this less exclusive club is going to confer the same benefits."
Considering average MBA salaries
Between 2008 and 2012, there was a 4.6 percent decrease in the average minimal pay for graduates with MBAs to $53,900. The average total pay dropped 62 percent during that time at 186 PayScale schools. This just goes to show that people getting MBAs is really just hurting others who have the degree.
It seems that now top-tier businesses only recruit from very distinctive schools to keep the exclusivity of the degree. A sluggish economy does not help since there are fewer jobs and more MBAs just sitting out there. On top of that, business schools are giving false hope to students who believe they can get much better jobs with their MBAs.
Universities making cash
MBA students should not get their MBA unless they can get into a top ten business university. There are too any business and law degrees currently. Universities love all the extra cash, but students end up graduating with virtually no job opportunities. Make sure you evaluate the degree a little more before getting debt to go to university some more.
What is happening to MBAs?
There has been a massive increase in the number of people with MBAs despite the fact that there has not been a rise in jobs. The Wall Street Journal reports that this increase started in the early 1990s when many part-time and executive MBA programs started to be offered online and at lower-ranked schools.
According to professor Dr. Brooks Holtom at Georgetown University McDonough School of Business, "An M.B.A. is a club that is now not exceptional. You should not assume that this less exclusive club is going to confer the same benefits."
Considering average MBA salaries
Between 2008 and 2012, there was a 4.6 percent decrease in the average minimal pay for graduates with MBAs to $53,900. The average total pay dropped 62 percent during that time at 186 PayScale schools. This just goes to show that people getting MBAs is really just hurting others who have the degree.
It seems that now top-tier businesses only recruit from very distinctive schools to keep the exclusivity of the degree. A sluggish economy does not help since there are fewer jobs and more MBAs just sitting out there. On top of that, business schools are giving false hope to students who believe they can get much better jobs with their MBAs.
Universities making cash
MBA students should not get their MBA unless they can get into a top ten business university. There are too any business and law degrees currently. Universities love all the extra cash, but students end up graduating with virtually no job opportunities. Make sure you evaluate the degree a little more before getting debt to go to university some more.
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