It is not exactly trivial to estimate the return of a specific education, since we cannot observe the development of people’s wages without that particular education. Examining the returns of an MBA is a bit easier because most programmes require work experience from the candidates they admit. Their wages allow an estimate how people actually develop after they received their MBA degree.
Having said that, most MBAs are of the opinion that the value of their degree goes beyond the financial, or that is at least what they claim in the latest GMAC’s Alumni Perspectives Survey, where 9 out of 10 participants agreed that an MBA was a “personally rewarding” experience as well.
GMAC – the administrators of the GMAT – collected data from 4,135 alumni from graduate management programmes in the classes of 2000-2011, with 3,794 from MBA programmes worldwide, including 847 members of the MBA class of 2011. Their majority finds that the value of the MBA holds up across three different dimensions — personal, professional, and financial.
• 93 per cent of 2000-2011 alumni say their MBA was personally rewarding
• 92 per cent of MBA alumni report that their degree prepared them for leadership positions.
• 77 per cent of the class of 2011 MBA alumni viewed their degree as essential for obtaining their first job after graduation, and 81 per cent of them are satisfied or very satisfied with their current jobs.
• 82 per cent of all MBA alumni say their promotion came faster than they had expected.
• 79 per cent report that having a graduate management degree offers greater job stability in a slow economy.
• Across all MBA programme types 2011 alumni recouped one-third of their financial investment in the first year after graduation. After approximately four years, alumni typically enjoyed the full return of their investment.