Generally, business school is a poor investment. If you want to go to a top 20 school, you’re going to spend at least $100,000 and two years of your life (easily another $100,000 or $200,000 in lost earnings). Realistically, your opportunity cost is approaching a third of a million dollars. You’re going to need a substantial income boost in order to justify that kind of outlay. Unfortunately, studies indicate that MBAs, even from top schools, don’t provide this kind of boost:
There is scant evidence that the MBA credential, particularly from non-elite schools, or the grades earned in business courses—a measure of the mastery of the material—are related to either salary or the attainment of higher level positions in organizations. These data, at a minimum, suggest that the training or education component of business education is only loosely coupled to the world of managing organizations.
– The End of Business Schools? Less Success Than Meets the Eye
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I’m finishing up my mba and looking back, I’m inclined to agree in many cases. I’d do my degree over in a heartbeat though. It actually has opened a few valuable doors for me and rounded me out well.
I wrote a nice recollection of it all a while back. Check it out!
http://wewearkhakis.com/2011/12/14/why-your-mba-means-sht/
Thanks Shane. Nice write up.
If I were a boss, I would rather promote a supervisor of production floor to do
commerical stuff , providing him a handbook of spreadsheet.
This is a pretty poor argument. First, realize that many people do MBAs part time in the evenings or weekends, so there is no lost income. Second, you can’t quote “Studies” without specifics. I also saw some “Studies” that show that MBA is the most valuable degree investment you can make. Third, most MBAs are nowhere near $100K, see “Studies.” Fourth, alot of employers pay for part or all of MBAs. Last but not least, education is not designed for the sole purpose of increasing your earning potential, just ask the millions of people that study so they can do a job they love, but don’t get paid much to do it (Teachers, social workers, therapists, etc). I encourage anyone to chase their educational dreams, but do it for the right reasons……and give good advice the others
Thor:
There are these wonderful things called “hyperlinks”, which, when activated, transport you to another “webpage” on the “internet”. You can find one at the end of the “blog post” above. Utilizing it will direct you to the “Studies” you seek.
Best of luck to you.