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Reply to "Seems like everyone’s upper middle class adult kids have an MBA?"
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[quote=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 [i]"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[b] 0.059 for an MBA[/b]."[/i] 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.[/quote]
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