Seems like everyone’s upper middle class adult kids have an MBA?

[Anonymous]

The (internal rate of) return to an M.B.A. is only 5.9%.

www.nber.org/system/files/working_papers/w26959/w26959.pdf

"The return is 0.103 (0.018) for a masters in engineering, 0.179 (0.033) for computer and mathematical sciences, 0.227 (0.053) for health related fields, 0.235 (0.041) for nursing, 0.202 (0.029) for psychology and social work, 0.162 (0.019) for education, and essentially zero for both the arts and the humanities. ... the values are 0.148 for
law, 0.160 for medicine, and 0.059 for an MBA."

The returns to selective M.B.A. programs might be much higher. But a one-year masters is much cheaper in terms of tuition and opportunity cost.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Ok, one more time: not everyone gives a crap about Goldman. Millions of people have wonderful lives without Goldman. See?

Of course. However, many people think that getting *any* MBA is a golden ticket to investment banking, hedge funds, private equity, and untold riches. It's not. Where you get that MBA very much matters if those things are your end goal.

Very few think that or care about those sectors in real life. You are spending too much time on the internet or maybe you live in Connecticut or Jersey. Most of the MBAs I know are consultants, project managers in tech, and working normal management jobs for random corps.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The entire premise of this post is kind of laughable. The MBA is becoming increasingly irrelevant and in fact applications to even the top programs (Harvard, Wharton, etc.) are down by over 30%+ compared to 5 years ago.

If you have a liberal arts background and say work for a non-profit, then by all means an MBA can help you with a switch to a new industry and a business role. But most people don't need one...and judging by overall demand...are not seeking one.

Many are using employee tuition assistance to pay for these degrees. If it's free or near free, why wouldn't you take advantage? Are you also aware a lot of industries require a master's for senior roles and the big bumps in pay that come with those positions? Only a few of the young adults I know with MBA made career pivots with it, most used it to help them keep getting promoted to more senior roles.

Most of the employer assistance degrees are not full-time MBA programs...I don't disagree if you want to go to a night program or an executive program for free. There are many more industries and jobs that could care less about an MBA if you have shown yourself qualified. If you want to work for a company or in the government that gives you a bump because you received an advanced degree (hence, why there are so many scandals about degrees by mail)...then have at it.

It sounds like you are not actually in the workforce if you don't realize an MBA is required to advance at F500s, consulting firms, etc.

[Anonymous]

Anonymous wrote:Ok, one more time: not everyone gives a crap about Goldman. Millions of people have wonderful lives without Goldman. See?

+1. This person is posting stale memes from Wall Street Oasis or something. This is a Washington DC forum, very few young professionals here and/or their adult children are gunning to pivot to finance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ok, one more time: not everyone gives a crap about Goldman. Millions of people have wonderful lives without Goldman. See?

Of course. However, many people think that getting *any* MBA is a golden ticket to investment banking, hedge funds, private equity, and untold riches. It's not. Where you get that MBA very much matters if those things are your end goal.

Very few think that or care about those sectors in real life. You are spending too much time on the internet or maybe you live in Connecticut or Jersey. Most of the MBAs I know are consultants, project managers in tech, and working normal management jobs for random corps.

A lot of people who go to hedge funds or PE out of business school were already doing this before they went. Business school didn't open the door.

[Anonymous]

Anonymous wrote:I have an MBA in Finance. I went in person 3.5 years after work in a part time program. Pre on-line schools.

MBAs were hard back in the day. My school wanted people with work experience at prestigious companies and references etc. We were all working full time and doing school
7-10 pm.

Today you can get on online or just stay one extra year in school and have one at 22

My own niece just stayed on more year on college partying and got one.

In my day the classroom discussions were interesting. People in class were 25-40 many were AVPs, VPs etc trying to reach next level.

Sounds like you went to NYU Stern. The PT program has a lot of people with great backgrounds. I went to get a leg up on a promotion.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The entire premise of this post is kind of laughable. The MBA is becoming increasingly irrelevant and in fact applications to even the top programs (Harvard, Wharton, etc.) are down by over 30%+ compared to 5 years ago.

If you have a liberal arts background and say work for a non-profit, then by all means an MBA can help you with a switch to a new industry and a business role. But most people don't need one...and judging by overall demand...are not seeking one.

Many are using employee tuition assistance to pay for these degrees. If it's free or near free, why wouldn't you take advantage? Are you also aware a lot of industries require a master's for senior roles and the big bumps in pay that come with those positions? Only a few of the young adults I know with MBA made career pivots with it, most used it to help them keep getting promoted to more senior roles.

Most of the employer assistance degrees are not full-time MBA programs...I don't disagree if you want to go to a night program or an executive program for free. There are many more industries and jobs that could care less about an MBA if you have shown yourself qualified. If you want to work for a company or in the government that gives you a bump because you received an advanced degree (hence, why there are so many scandals about degrees by mail)...then have at it.

It sounds like you are not actually in the workforce if you don't realize an MBA is required to advance at F500s, consulting firms, etc.

I agree. Bain Capital, Boston Consulting Group recruit MBAs starting at salaries close to $200,000. Some private equity firms require MBAs.

And not everyone is looking to work for the most prestigious firms. An MBA from a small southern university could help advance someone in the southern company they work for.

I don’t get people “embarrassed “ by their child’s MBA. Just ridiculous

[Anonymous]

Sibling's employer paid for the MBA. The classes even came to the actual workplace so they could do it as a group. There are also employers who give a raise with a masters degree. So, I don't think that means you can only go to Wharton, etc. But, I do think it can matter for the ROI if you are paying yourself and only hoping it helps in the job market.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The entire premise of this post is kind of laughable. The MBA is becoming increasingly irrelevant and in fact applications to even the top programs (Harvard, Wharton, etc.) are down by over 30%+ compared to 5 years ago.

If you have a liberal arts background and say work for a non-profit, then by all means an MBA can help you with a switch to a new industry and a business role. But most people don't need one...and judging by overall demand...are not seeking one.

Many are using employee tuition assistance to pay for these degrees. If it's free or near free, why wouldn't you take advantage? Are you also aware a lot of industries require a master's for senior roles and the big bumps in pay that come with those positions? Only a few of the young adults I know with MBA made career pivots with it, most used it to help them keep getting promoted to more senior roles.

Most of the employer assistance degrees are not full-time MBA programs...I don't disagree if you want to go to a night program or an executive program for free. There are many more industries and jobs that could care less about an MBA if you have shown yourself qualified. If you want to work for a company or in the government that gives you a bump because you received an advanced degree (hence, why there are so many scandals about degrees by mail)...then have at it.

It sounds like you are not actually in the workforce if you don't realize an MBA is required to advance at F500s, consulting firms, etc.

Actually…right back at you since I worked in investment banking for many years rising to Managing Director without an MBA. You sound like someone parroting a news article from the 1980s on how to succeed at a F500 company. Please grandma or grandpa…get with the times.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The entire premise of this post is kind of laughable. The MBA is becoming increasingly irrelevant and in fact applications to even the top programs (Harvard, Wharton, etc.) are down by over 30%+ compared to 5 years ago.

If you have a liberal arts background and say work for a non-profit, then by all means an MBA can help you with a switch to a new industry and a business role. But most people don't need one...and judging by overall demand...are not seeking one.

Many are using employee tuition assistance to pay for these degrees. If it's free or near free, why wouldn't you take advantage? Are you also aware a lot of industries require a master's for senior roles and the big bumps in pay that come with those positions? Only a few of the young adults I know with MBA made career pivots with it, most used it to help them keep getting promoted to more senior roles.

Most of the employer assistance degrees are not full-time MBA programs...I don't disagree if you want to go to a night program or an executive program for free. There are many more industries and jobs that could care less about an MBA if you have shown yourself qualified. If you want to work for a company or in the government that gives you a bump because you received an advanced degree (hence, why there are so many scandals about degrees by mail)...then have at it.

It sounds like you are not actually in the workforce if you don't realize an MBA is required to advance at F500s, consulting firms, etc.

I agree. Bain Capital, Boston Consulting Group recruit MBAs starting at salaries close to $200,000. Some private equity firms require MBAs.

And not everyone is looking to work for the most prestigious firms. An MBA from a small southern university could help advance someone in the southern company they work for.

I don’t get people “embarrassed “ by their child’s MBA. Just ridiculous

Exactly zero private equity firms require an MBA…many hire former Wall Street analysts and even MBB consultants after completing 2-year programs from undergrad. This isn’t to say they don’t also hire MBAs…but many principals at P/E firms don’t have MBAs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The entire premise of this post is kind of laughable. The MBA is becoming increasingly irrelevant and in fact applications to even the top programs (Harvard, Wharton, etc.) are down by over 30%+ compared to 5 years ago.

If you have a liberal arts background and say work for a non-profit, then by all means an MBA can help you with a switch to a new industry and a business role. But most people don't need one...and judging by overall demand...are not seeking one.

Many are using employee tuition assistance to pay for these degrees. If it's free or near free, why wouldn't you take advantage? Are you also aware a lot of industries require a master's for senior roles and the big bumps in pay that come with those positions? Only a few of the young adults I know with MBA made career pivots with it, most used it to help them keep getting promoted to more senior roles.

Most of the employer assistance degrees are not full-time MBA programs...I don't disagree if you want to go to a night program or an executive program for free. There are many more industries and jobs that could care less about an MBA if you have shown yourself qualified. If you want to work for a company or in the government that gives you a bump because you received an advanced degree (hence, why there are so many scandals about degrees by mail)...then have at it.

It sounds like you are not actually in the workforce if you don't realize an MBA is required to advance at F500s, consulting firms, etc.

Actually…right back at you since I worked in investment banking for many years rising to Managing Director without an MBA. You sound like someone parroting a news article from the 1980s on how to succeed at a F500 company. Please grandma or grandpa…get with the times.

Nobody said you couldn’t get to the top without an MBA. The MBAs from the top schools will be recruited right away with top jobs and high salaries. You worked for years to prove yourself. There’s usually more than one way to get somewhere.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The entire premise of this post is kind of laughable. The MBA is becoming increasingly irrelevant and in fact applications to even the top programs (Harvard, Wharton, etc.) are down by over 30%+ compared to 5 years ago.

If you have a liberal arts background and say work for a non-profit, then by all means an MBA can help you with a switch to a new industry and a business role. But most people don't need one...and judging by overall demand...are not seeking one.

Many are using employee tuition assistance to pay for these degrees. If it's free or near free, why wouldn't you take advantage? Are you also aware a lot of industries require a master's for senior roles and the big bumps in pay that come with those positions? Only a few of the young adults I know with MBA made career pivots with it, most used it to help them keep getting promoted to more senior roles.

Most of the employer assistance degrees are not full-time MBA programs...I don't disagree if you want to go to a night program or an executive program for free. There are many more industries and jobs that could care less about an MBA if you have shown yourself qualified. If you want to work for a company or in the government that gives you a bump because you received an advanced degree (hence, why there are so many scandals about degrees by mail)...then have at it.

It sounds like you are not actually in the workforce if you don't realize an MBA is required to advance at F500s, consulting firms, etc.

Actually…right back at you since I worked in investment banking for many years rising to Managing Director without an MBA. You sound like someone parroting a news article from the 1980s on how to succeed at a F500 company. Please grandma or grandpa…get with the times.

Nobody said you couldn’t get to the top without an MBA. The MBAs from the top schools will be recruited right away with top jobs and high salaries. You worked for years to prove yourself. There’s usually more than one way to get somewhere.

The MBAs are getting recruited into the same jobs and salaries as the kids that finish analyst programs and are retained as associates. Those MBAs tend to be older since a top MBA program wants 3-5 years experience…so the MBA is getting hired at 26-29 (work + 2 year MBA) to the same job many 23 or 24 year olds are getting who decide to remain in banking after working as an analyst. Not all analysts are invited to continue (though much higher %ages compared to day 20-30 years ago)…and many burn out (same for the MBA associates too), but it is actually a quicker path to the top if you make the cut.

[Anonymous]

Anonymous wrote:

Anonymous wrote:“ many people think that getting *any* MBA is a golden ticket to investment banking, hedge funds, private equity, and untold riches.“

It’s about the same number of people who think marrying Britney Spears is a good idea.

Back here on planet Earth, people get the no-name MBAs because they hope it will give them a boost in getting a promotion. Or it will make a some HR drone look at their resume for more than 7 seconds. Nobody gets handed their Southwest Arkansas University MBA diploma & expects Warren Buffett to be waiting for them when they walk off the stage.

That's where I disagree. I know a few 25-year-old guys (e.g., neighbor's kid; friends of my son) who completed their MBAs from unremarkable programs and are bewildered as to why they can't get an interview at Morgan Stanley. Ameriprise back office, sure.

Then they are morons. And anyone advising them is clueless too.
Hopefully they do not borrow any money to get that degree.

[Anonymous]

There are different kinds of MBA programs with various motivations for attending:

- Top 15ish - gunners and their friends who want Goldman Sachs, MBB, etc. (Three tiers in this group)

- regionals with access to specific industries (e.g., Washington Foster and Carnegie Mellon for tech)

- local schools where people go part time to check a box. This group excludes Top 15ish part time like Northwestern or NYU.

[Anonymous]

I notice masters degrees in general have become more standard and an MBA is a common one, even for students that aren’t gunning for top schools and high level business or finance careers. I think a lot of people just get them to check off a box so they can get paid slightly more or to meet promotion eligibility criteria.

These are so easily obtained online, part time, etc which make them an attractive option. Some employers pay for a portion, some people take out loans or parents pay