4 ms·

However, an MBA will cost you a lot more. The demand is higher because the returns to a degree holder are higher at the margin.

noodle 19y ago
they cost more because they need a reasonable barrier of entry. if pretty much anyone can get an MBA, they need to be expensive, or pretty much everyone will get an MBA. don't need that for an engineering degree -- if you price people out of the degree, even fewer people will sign up than already do.
- mocheeks 19y ago
  Wow noodle, thats an interesting point. I never thought about that. That makes a ton of sense. (caveat: another barrier is work experience and GMAT score to determine what "level of prestige" school you can get your MBA from)
  - noodle 19y ago
    indeed. there are other issues at play in which a lot of stuff is based on. you pay more for a more prestigious school so you can get paid more upon graduation. and not all MBAs are created exactly equal. it is definitely true that some are a little harder (and some coloring books are harder to color within the lines on), and that some are easier. but the underlying principle is still the same, and unless you're graduating from a prestigious school or a school with a terrible reputation, all other MBAs are approximately equivalent.
- Prrometheus 19y ago
  The acceptance rate to the good MBA schools is very low, which is already a barrier to entry. In MBA land, it makes a big difference if you go to a top 10 school or Local U. A degree from Stanford, Harvard, Wharton, Sloan, or Kellogg pretty much guarantees you a hedge fund, private equity, or investment banking position, if you want one. Also, a LARGE portion of Fortune 500 CEOs come from the top schools. However, you must be rather smart and have great work experience (or have very good work experience while being female/minority) to get into those schools.
  - noodle 19y ago
    indeed, the school also makes a difference, but, IMO, the biggest difference among schools is not in the quality of the MBA, its the networking and prestige that comes along with it. you don't go to harvard to get an MBA from harvard, you go to harvard so you can say you got an MBA from harvard; to form the connections, networks, and for the prestige that comes with the harvard name. thats what you pay for -- you pay for that up front so you can get paid more later by waving your diploma around.

noodle 19y ago

they cost more because they need a reasonable barrier of entry. if pretty much anyone can get an MBA, they need to be expensive, or pretty much everyone will get an MBA. don't need that for an engineering degree -- if you price people out of the degree, even fewer people will sign up than already do.

mocheeks 19y ago
Wow noodle, thats an interesting point. I never thought about that. That makes a ton of sense. (caveat: another barrier is work experience and GMAT score to determine what "level of prestige" school you can get your MBA from)
- noodle 19y ago
  indeed. there are other issues at play in which a lot of stuff is based on. you pay more for a more prestigious school so you can get paid more upon graduation. and not all MBAs are created exactly equal. it is definitely true that some are a little harder (and some coloring books are harder to color within the lines on), and that some are easier. but the underlying principle is still the same, and unless you're graduating from a prestigious school or a school with a terrible reputation, all other MBAs are approximately equivalent.
Prrometheus 19y ago
The acceptance rate to the good MBA schools is very low, which is already a barrier to entry. In MBA land, it makes a big difference if you go to a top 10 school or Local U. A degree from Stanford, Harvard, Wharton, Sloan, or Kellogg pretty much guarantees you a hedge fund, private equity, or investment banking position, if you want one. Also, a LARGE portion of Fortune 500 CEOs come from the top schools. However, you must be rather smart and have great work experience (or have very good work experience while being female/minority) to get into those schools.
- noodle 19y ago
  indeed, the school also makes a difference, but, IMO, the biggest difference among schools is not in the quality of the MBA, its the networking and prestige that comes along with it. you don't go to harvard to get an MBA from harvard, you go to harvard so you can say you got an MBA from harvard; to form the connections, networks, and for the prestige that comes with the harvard name. thats what you pay for -- you pay for that up front so you can get paid more later by waving your diploma around.