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As tuition soars and enrollment booms, paychecks are getting smaller for those graduating with M.B.A.s or other professional degrees. http://on.wsj.com/Wp6283
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29 comments
 
Double Ouch, I am feeling the pain
 
What's the stat of the top 10 B-school?
 
Partly why I want to dual major and get more out of my education while I'm there..
 
Curious to see what the percentage of individuals making $1 million annually is with or without a degree.  I remember reading statistics from a decade ago that indicated that 60-70% (depending on survey methods) of entrepreneurs making over a million a year never finished college and a good number of them never finished high school.
 
Supply and demand... The more people with degrees, the easier it is to get to work for you. 
 
Certainly an MBA, MD or PhD affords you good credibility, and thus garners you a better salary than without it.  But I hope students graduating with these advanced degrees have acquired the critical thinking, learning and problem-solving skills needed for today's more complicated, rapidly changing landscape. 

For example, how well do they grasp a prospective employer's business, and how well do they position themselves as having what it takes to help them advance their business?  If they want a bigger salary, how well do they demonstrate their monetary value-add to the business, so as to warrant what they want?  Moreover, how well do they know their competitive landscape, that is, among candidates or staff with MBAs, and how well do they differentiate themselves?    
 
Income and debt chart is liable to the cyclicality of the economic peaks and troughs. A primary driver of the increase in graduates may be attributed somewhat by the increase in population. This means that both charts should not be analyzed in a vacuum.
 
Supply and demand, and a bad economic climate ...
 
“Formal education will make you a living; self-education will make you a fortune.” Jim Rohn, American entrepreneur
 
WE had a MUCH better economy when MBAs were a rarity.
 
+Nell Gyenes So true. I'm not knocking formal education, but there's no more valuable skill than knowing how to learn on your own... you'll use it the rest of your life.
 
Debt can be paid over decades. Just using basic math, making $86,000 per year for 10 years makes $81,000 of low interest debt more than worth the price. Silly.
 
Formal education, with all of its flaws, provides an easy (though not necessarily efficient) way of weeding out applicants. 

In years past, when the economy was in better health and there was some slack in the labor market, companies would hire fresh MBAs and even undergraduates and train the people from the ground up. With all of the experienced and skilled people already looking for work, new grads of all types are at a severe competitive disadvantage. Employers now want applicants pretrained in the industry and on specific tools, ready to enhance the firm on day one with absolutely no learning curve required. If the firm can't find this perfect candidate, it will likely hold out, hire no one, then complain about a "lack of qualified candidates," It is truly mind-boggling.

In addition, an MBA ten years ago may have been regarded by a hiring manager as a preference over another degree, like a bachelor's in accounting, statistics, management, or whatever. Today the manager can now demand a master's or even a PhD in virtually any field, as those people are out of work also. In an age of hyperspecialization, most MBAs do not have the specificity to compete on the high-end. 
 
From my experience kids with MBA's come out of school thinking they are brilliant and make some of the dumbest mistakes I've ever witnessed.  What we need are people educated in practical and pragmatic problem solving, aka common sense.  Maybe MBA's are beginning to get paid their worth, lol.
I will add that as a senior manager I was continually amazed at how these "educated people" had poor writing skills, poor spelling and an amazing inability to work with reality.  They could sometimes look at reports and tell which numbers should go up and which should go down, they just had no understanding of HOW to make it happen.
 
Chinese economy is growing the fastest...do they hire any MBAs at all...
ki chin
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Point is at the low quality of MBA education, and capability/competence of graduates is not improved after MBA program.

 
If you are looking for a degree in Engineering, go to Germany. Education is free and unless you are in MIT or Stanford, at par in quality. Graduate debt free and learn a new culture, a new language and a different way of life. Take it from me, I am doing it. Right now.
 
+Rahul Sinha , You are right. Problem is: in the US, every thing you accomplished elsewhere has no value at all. Unless it is from a very well known University/Business school with high world ranking, they just don't recognise it. That's what I like in the EU, you can move along easily through countries.
 
+James Hobson I like your point about maybe MBAs are now getting paid what they're actually worth.  Perhaps (or probably) they were overpaid, and there is a market correction happening. 
 
We nee Engineers with MBA's.
 
maybe the quality of our mba s does not match with the current world need due to the increase in developments and the concept requirements for those jobs. something will not be demanded more if it 's content requirement is invalid. educators must relook at the designing and upgrading of courses. matata ca!!!
 
As a business major this is sadly the case
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