Is an MBA Synonymous with Money?

cclay —  May 25, 2010 — 13 Comments

With all the recent discussion about teaching ethics in business schools, some of us may have started to forget another factor involved in choosing to attend business school: moving up the pay scale.

It’s good to remember that, according to the U.S. Census Bureau , there is about a 20% increase in salary between a Bachelor’s degree and a Master’s degree, and that’s taking into account all of the Master’s degrees out there!

Yet it seems that to make a lot of money you may have to spend a lot of money. A new study commissioned by Bloomberg BusinessWeek has found that there is in fact a correlation between an MBA’s average salary and where he or she went to business school.

Harvard, where students spend an average of $106,000 for their two years of education, comes in first. According to the study, the median income for HBS grads over a 20 year period is $3,867,903. Wharton is second and has the highest average salary at graduation: $137,000.

But if you’re looking for a large percentage increase in salary over time, check out George Washington University, where the average salary increase in 20 years is 114 percent.

It looks like  getting an MBA from a top school has its benefits. Added incentive to get a great GMAT score!

cclay

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13 responses to Is an MBA Synonymous with Money?

  1. I’ve been meeting with people from many different business schools lately, and they all say the same thing: despite the intricacies and strengths of all the different business schools out there, the Harvard brand is simply unstoppable. Anyone thinking of going to business school should at least apply there.

  2. This is good to know, my son has an interest in going to business school and this will help him make a good choice.

    Greg Wallace
    Bidding Websites

  3. Harvard is the best with many others coming in at at distant second. It might be important to remember…It’s not where you get your education but what you do with it.

  4. It sounds like the decision to go to a business is a no brainer. The first course of action is to apply to several schools which should give a larger pool to pick from, however not all schools will accept.

  5. Just another reason to get into a good school, right? Crossing my fingers…

  6. I think the fastest way to move up the pay scale is for business schools to teach entrepreneurial skills. This – more than the business school a student graduates from – is what will enable young women and men to prosper in the 21st century.

  7. The whole point of having an MBA in my opinion is to gain a deeper insight in running a business. By the same argument all successful business generate great revenues.

    So yes MBA to me is almost symbiotically linked with money

  8. MBA can really ensure one’s bright future. However, much of it still depends on the disposition of the student.

  9. “Comment by Anonymous | 2011/06/27 at 06:40:03
    MBA can really ensure one’s bright future. However, much of it still depends on the disposition of the student.”

    Schools actually know the problems with students so eventually they are or they will have plans to turn this around and produce great products without the problem of dispositions. Schools can train students afterall.

  10. Yes, a masteral degree will definitely add value to your employment and enables you to command a higher salary and better job employment. However, companies will still look for your experience and understanding of the industry you’ll be working in. You may even be asked to hand in a portfolio of your work and discuss your previous job responsibilities. A higher education will bring you to a higher plateau but same with a hardcore work experience.

  11. Harvard seems to be the to be the most wanted choice for business education but more and more companies are getting there attention more on the work experience and personal skills then the name of the university. Not anybody can afford to go in Harvard but this doesn’t mean that he can’t make a successful career.

    Kelsey

  12. What do you think of this year’s list of top MBA employers? Have you worked for any of the companies? Would you want to work for them? Are they a good place to start a career? What should new MBAs consider when deciding where to work after graduation? Is it better to target smaller creative firms, or go for the big bucks?

  13. True that. Having a master’s degree, most especially if it’s from a really reputable school (ahem—Harvard), makes you a first choice among jobs everywhere. It automatically makes you the most qualified contender among everyone else.

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