THE ECONOMIC RETURNS TO AN MBA*

International Economic Review - Tập 49 Số 3 - Trang 873-899 - 2008
Peter Arcidiacono1, Jane Cooley2, Andrew Hussey3
1Duke University
2University of Wisconsin, Madison
3University of Memphis#TAB#

Tóm tắt

Because MBA programs require work experience before admittance, prior wages can be exploited to disentangle the return to the degree from unobserved productivity. We find that controlling for individual fixed effects generally reduces the estimated returns to an MBA, particularly for those in top programs. However, for full‐time MBA students attending schools outside of the top‐25 the estimated returns are higher when we control for individual fixed effects. We show that there is some evidence that those who take the GMAT but do not obtain an MBA are stronger in dimensions such as workplace skills that are not easily measured.

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