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For MBAs, Breaking Even is a More Distant Dream (Higher tuition and lower starting salaries)
BusinessWeek ^ | 01/07/2011 | Geoff Gloeckler

Posted on 01/07/2011 6:27:17 AM PST by SeekAndFind

The hits just keep coming for the MBA Class of 2010.

First, the economy crashed just as students were stepping into their first B-school classes. Then the job market tanked. Jobs were scarce, salaries dipped, and students scrambled simply to find summer internships, let alone full-time positions. Now, a new study done as part of Bloomberg Businessweek's ranking of top full-time MBA programs suggests it's going to take graduates longer to see a return on their MBA investments than their peers did from earlier graduating classes.

Two years ago, Bloomberg Businessweek calculated that it would take members of the MBA Class of 2008 an average of 5.6 years to recoup their MBA investment. For the Class of 2010, the number jumped to 6.5 years. Why the difference? First, post-MBA salaries were lower in 2010 (down 6 percent from the 2008 average), while pre-MBA salaries were higher, meaning the pay differential between what a grad made before and after earning the degree was not as large. In addition, the overall cost of attending B-school increased, putting the Class of 2010 in a less-than-ideal climate to begin earning a return.

The MBA ROI figure was calculated using a few different data points. First, the total dollar amount the average student spends on a degree (tuition, fees, living expenses) was added to the total salary given up to attend B-school. The median pre-MBA salary was then subtracted from the median post-MBA salary, and the difference was divided into the total amount spent on the MBA. The resulting number represents the length of time, in years, it will take the average student to make a return on their investments.

(Excerpt) Read more at businessweek.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: mba; salaries; tuition

1 posted on 01/07/2011 6:27:23 AM PST by SeekAndFind
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To: SeekAndFind

Based on this calculation, it will take members of the MBA Class of 2010 anywhere from two and a quarter years to more than 14 years to recoup their money, depending on the school


2 posted on 01/07/2011 6:28:21 AM PST by SeekAndFind
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To: SeekAndFind

Calculating ROI on tuition and time spent should be the first exercise for any prospective MBA student.


3 posted on 01/07/2011 6:32:49 AM PST by glorgau
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To: SeekAndFind

Hey, this is a good thing. It will drive down what businesses have to spend for MBA caliber people! We can import in some H1Bs, and offshore the rest of those jobs.

If we play our cards right, we can use the free market to get rid of all but the service jobs.


4 posted on 01/07/2011 6:32:53 AM PST by brownsfan (D - swift death of the republic, R - lingering death for the republic.)
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To: brownsfan
Hey, this is a good thing. It will drive down what businesses have to spend for MBA caliber people! We can import in some H1Bs, and offshore the rest of those jobs. If we play our cards right, we can use the free market to get rid of all but the service jobs.

H1B's are a very sore subject for me. It is unconscionable that the program still exists with 10% unemployment. Just when I was thinking about getting my masters...
5 posted on 01/07/2011 6:39:11 AM PST by TSgt (Colonel Allen West & Michele Bachman - 2012 POTUS Dream Team Ticket!)
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To: TSgt

“H1B’s are a very sore subject for me. “

Did I need a sacasm tag?

The fact that our manufacturing capacity is in China is kind of an issue with me. Especially since manufacturing is what pulls an economy out of a recession.

I’m also a little put off that I’m told businesses can only care about money. Nationalism is not part of their decision making. But if those same businesses need the American military to protect them, they have no problem appealing for that help.


6 posted on 01/07/2011 6:44:31 AM PST by brownsfan (D - swift death of the republic, R - lingering death for the republic.)
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To: brownsfan

Agreed!

For example, every penny of the defense budget should be spent in America, no exceptions.

And not everyone goes to college so we need manufacturing jobs.

Other than food, it would be a good exercise to see if one could find something at Wal-Mart that is made in America.


7 posted on 01/07/2011 6:54:23 AM PST by TSgt (Colonel Allen West & Michele Bachman - 2012 POTUS Dream Team Ticket!)
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To: TSgt

” every penny of the defense budget should be spent in America, no exceptions”

Bad advice and extremely impractical. Some items are not available in the US. Further, we shouldn’t be buying poor, expensive products in the US if better products are available elsewhere. As an example, start with rare earth elements. Not available everywhere and necessary for the military. Unfortunately, China controls the majority of the market.


8 posted on 01/07/2011 7:17:40 AM PST by cowtowney
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To: SeekAndFind

Considering that any two-year Community College Business Degree covers twice the relevant Business material than any MBA course, it’s a crime that any of them are making above minimum wage (unless their undergrad was a legitimate Business program).


9 posted on 01/07/2011 7:19:31 AM PST by meadsjn (Sarah 2012, or sooner)
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To: SeekAndFind

MBA - Mediocre But Arrogant

BS - Self Explanatory

BA - Barely Acceptable

MS - More of The Same

Etc.....


10 posted on 01/07/2011 7:20:01 AM PST by NeverForgetBataan (To the German Commander: ..........................NUTS !)
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To: SeekAndFind

Some interesting info here: http://personalmba.com/

Humor here: http://www.youtube.com/watch?v=NcoDV0dhWPA


11 posted on 01/07/2011 7:46:09 AM PST by Disambiguator (Political Correctness is mandatory stupidity.)
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To: cowtowney

RE: start with rare earth elements

We have a company named MOLYCORP ( Symbol:MCP ), that is is a rare earth oxide (REO) producer in the Western hemisphere and own most fully developed rare earth project outside of China.

The main hurdle they have at home are environmental restrictions.


12 posted on 01/07/2011 7:49:00 AM PST by SeekAndFind
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To: SeekAndFind

The main hurdle they have at home are environmental restrictions.””

Another reason to eliminate the EPA.


13 posted on 01/07/2011 8:00:55 AM PST by ridesthemiles
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To: SeekAndFind

An MBA should be for getting a promotion, not an entry-level position.


14 posted on 01/07/2011 8:02:43 AM PST by dfwgator
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