Veera Korhonen
Research expert covering United States data for society
Business schools in the United States - Statistics & Facts
In contrast to the wide-eyed undergraduates in universities across America, the typical business school student in the United States begins with a greater idea of their place in the world. Many pursuing a master’s degree in business today see the degree as an opportunity to upskill or advance their career having already been part of the workforce. While there are several different types of business master’s programs, the Master of Business Administration (MBA) is the most popular graduate management degree for students - and employers - worldwide. For those students looking to advance their career, leaving their current job is often undesirable as it may lead to dropping back down the career ladder on their return. Part-time MBA programs are popular for this reason. In addition, students have the option of enrolling in executive MBA (EMBA) programs, which are specifically designed for students who are further along in their careers and want to continue working full-time. In 2023, the Haas School of Business at the University of California, Berkeley was the highest rated part-time MBA program in the U.S., costing 3,600 U.S. dollars per credit hour, while the top ranked EMBA program was the Booth School of Business at the University of Chicago, costing a total of 204,450 U.S. dollars in tuition and fees.
Although the cost of attending business school in the U.S. is high, totaling over 80,000 U.S. dollars for most leading schools in 2023, the investment value of such a pursuit likely exceeds the price. The U.S. has the highest median starting salary for MBA graduates worldwide, estimated to be 125,000 U.S. dollars as of 2023. For leading business schools, this figure increases significantly; in 2022, the Wharton School of the University of Pennsylvania was ranked as the top business school with the highest return on investment for MBA graduates, with an average starting salary of 186,279 U.S. dollars. Due to changes in the job market, degree inflation, and increased business specialization, it has become common for companies to hire more people with Master’s degrees. In addition, employers are more likely to hire MBA candidates over candidates from other Master’s degree programs. According to a 2023 study of corporate recruiters worldwide, 66 percent of employers agreed that having a graduate business degree makes a candidate more competitive than those with only micro-credentials while 62 percent believed that employees with a graduate business degree were more likely to be successful in their organization. Results also revealed that over 90 percent of employers in consulting, technology, and finance industries expected to hire MBA graduates in 2023.
Though a Master's in business may open doors, it is important to note that employers are still looking to ensure that graduates meet certain skill requirements. A 2023 study found cross-cultural communication, Web3, Blockchain, and VR, and multilingualism to be the most important communication and technology skills for business school graduates cited by companies worldwide. Due to advances in technology, knowledge of AI and machine learning has also increased in importance for employers looking to hire. In addition, research from business schools in the U.S. has revealed increases in employer-use of virtual interviewing technologies and AI-empowered pre-interview screening tools when recruiting from full-time MBA programs, suggesting that the experience of MBA students may differ from years past as these trends continue. The growing popularity of online and hybrid business school programs in the U.S. further demonstrates new developments for prospective MBA students; according to the literature, interest in online programs is highest amongst women and first-generation candidates, as they are more likely to require the flexibility provided by online programs.
Despite increasing interest in online programs, the evidence indicates that employers remain uncertain of the value of graduates from online business school programs compared to those who attended in-person programs; in 2022, over 60 percent of surveyed employers worldwide agreed that employees with a graduate degree from a fully-person program were more likely to have strong leadership and communication skills, as well as more likely to have strong technical skills, compared to those with a degree from an online or predominantly online program. As e-learning and digital education gains prevalence in the U.S., however, it is probable that such stereotypes will subside in the future, allowing more Americans to benefit from a graduate business degree online without fear of weakening their career prospects.
Are MBA programs worth the price?
Although the cost of attending business school in the U.S. is high, totaling over 80,000 U.S. dollars for most leading schools in 2023, the investment value of such a pursuit likely exceeds the price. The U.S. has the highest median starting salary for MBA graduates worldwide, estimated to be 125,000 U.S. dollars as of 2023. For leading business schools, this figure increases significantly; in 2022, the Wharton School of the University of Pennsylvania was ranked as the top business school with the highest return on investment for MBA graduates, with an average starting salary of 186,279 U.S. dollars. Due to changes in the job market, degree inflation, and increased business specialization, it has become common for companies to hire more people with Master’s degrees. In addition, employers are more likely to hire MBA candidates over candidates from other Master’s degree programs. According to a 2023 study of corporate recruiters worldwide, 66 percent of employers agreed that having a graduate business degree makes a candidate more competitive than those with only micro-credentials while 62 percent believed that employees with a graduate business degree were more likely to be successful in their organization. Results also revealed that over 90 percent of employers in consulting, technology, and finance industries expected to hire MBA graduates in 2023.
Trends in employment and tech
Though a Master's in business may open doors, it is important to note that employers are still looking to ensure that graduates meet certain skill requirements. A 2023 study found cross-cultural communication, Web3, Blockchain, and VR, and multilingualism to be the most important communication and technology skills for business school graduates cited by companies worldwide. Due to advances in technology, knowledge of AI and machine learning has also increased in importance for employers looking to hire. In addition, research from business schools in the U.S. has revealed increases in employer-use of virtual interviewing technologies and AI-empowered pre-interview screening tools when recruiting from full-time MBA programs, suggesting that the experience of MBA students may differ from years past as these trends continue. The growing popularity of online and hybrid business school programs in the U.S. further demonstrates new developments for prospective MBA students; according to the literature, interest in online programs is highest amongst women and first-generation candidates, as they are more likely to require the flexibility provided by online programs.
Despite increasing interest in online programs, the evidence indicates that employers remain uncertain of the value of graduates from online business school programs compared to those who attended in-person programs; in 2022, over 60 percent of surveyed employers worldwide agreed that employees with a graduate degree from a fully-person program were more likely to have strong leadership and communication skills, as well as more likely to have strong technical skills, compared to those with a degree from an online or predominantly online program. As e-learning and digital education gains prevalence in the U.S., however, it is probable that such stereotypes will subside in the future, allowing more Americans to benefit from a graduate business degree online without fear of weakening their career prospects.
Veera Korhonen
,
Jul 5, 2024
Veera Korhonen
Research expert covering United States data for society
