Is the MBA Going Away? by Megan McArdle
But that doesn’t mean that the MBA is losing its value–when I returned to Chicago in October 2011 for my 10th business-school reunion, I saw no signs that Booth graduates were having any trouble finding high-paying jobs. Indeed, a top-tier MBA may be more valuable than ever. Just as in the broader economy, the top is pulling away from the rest.
The problem is that third-tier schools had been issuing a lot of degrees, charging tuition that only made sense if you were going to get a Harvard-caliber job. And those jobs aren’t available to the graduates of a small regional program. I’m not saying that those people aren’t good enough for those jobs, or don’t deserve them, but the reality is that the companies offering those glamorous-sounding, high-paying jobs in tech or consulting or finance only recruit at a handful of schools. This was true even when I was in school. But when unemployment was low, it wasn’t so obvious to folks considering an MBA from the University of Louisville. Now it is.
The education market has led students to get in debt for degrees that return very little in return. But the market will correct itself if allowed.