From the 2001 to 2011 the number of masters degrees earned grew 74% to 126,214. The tuition and fees for these programs are 24% more expensive. Sounds like the graduates are getting better and better results? Maybe not.
For Newly Minted M.B.A.s, a Smaller Paycheck Awaits
Ruth Simon, The Wall Street Journal, 6 January 2013
For graduates with minimal experience—three years or less—median pay was $53,900 in 2012, down 4.6% from 2007-08, according to an analysis conducted for The Wall Street Journal by PayScale.com. Pay fell at 62% of the 186 schools examined....
Another burdensome issue: a high debt load. Nearly 60% of graduating M.B.A.s said they expected to repay some loans after graduation, according to a 2012 GMAC survey. Among households headed by people with student debt who attended graduate school and are under 35, average student loan debt climbed to $81,758 in 2010 according a Wall Street Journal analysis of Federal Reserve data. That figure is up from $55,594 in 2007...
The M.B.A bubble is a mega-bubble made up of portions of two other bubbles. One is the use of higher degrees to thin out the employee poll in times of excess population. As Jack Goldstone has noted, this has been going on since the 17th century. The other bubble is the education price inflation caused by incautious lending. First by banks back stopped by the government, and now by the government directly.
No comments:
Post a Comment