In the United States today, nearly four times as many students earn an MBA as earn a law degree, a ratio that was one to one a mere 40 years ago. Even as American demand begins to level off, students in emerging markets, especially India and China, are flocking to the degree in growing numbers. But against this backdrop of swelling popularity, prospective MBA applicants are taking a hard look at the potential return on investment as never before. As follow up to its rankings, released last week, the Economist examined these and other important shifts in the MBA landscape as part of an article published over the weekend.
Data from the Economist’s most recent rankings show that the average basic salary for MBA graduates has dropped $1,500 in the past five years, to $94,000. Meanwhile, student surveys the Economist conducted as part of its rankings reveal that students are more focused now on how much they stand to make post-MBA than they were before the economic crisis. Moreover, as salaries have fallen, tuition has climbed. At the University of Chicago Booth School of Business, ranked No. 1 in the Economist 2013 rankings, tuition has gone up by $17,000 since 2008, to $112,000. At Harvard Business School (HBS), it has increased by $25,000 in the same time period.
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