MBA Pay Growth: U.S. Business Schools Lag Behind
Posted by: Louis Lavelle on February 15, 2013, Bloomberg Business
Pre- Reading Questions
Directions: Before students read the article have them answer the questions about the graph.
1- what are the three countries represented?
2- Where are they listed?
3- Where are the average salaries listed in this graph?
4- Where are the years listed?
5- According to the graph, which country had the highest salary growth?
6- Which country had the lowest salary growth?
“MBA pay growth at business schools in the U.S. has lagged significantly behind increases in Europe and Asia, according to recent research on pay trends adjusted for purchasing power.
The research by professors at the Spanish business school MBA Global Ranking is based on data published in the Financial Times from 2001 to 2010. It shows graduates of Asian business schools had MBA pay growth of 64 percent, vs. 35 percent for those in Europe and 12 percent for those in the U.S…The demand for business students grew very strongly in Europe at the end of the 1980s, and European business schools had a strong connection to the local labor markets…For European students it made a lot more sense to attend a European business school rather than study in the U.S.-
The study, which has been accepted for publication by the Academy of Management Learning and Education, uses pay data from the FT that is collected the year before it’s published from MBAs three years after graduation, and combined with data from two previous years. So the 2010 data used in the study are for the graduating classes of 2004 to 2006; the 2001 data are for the graduating classes of 1995 to 1997… What does all this mean for deans of U.S. and European business schools? For one, the authors write, they should begin taking Asia seriously, using alliances with business schools there to tap into the region’s economic growth and to maintain and improve their status at home.”
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