Average salaries before the MBA


Duncan

One of my older posts here is offline, so I am posting an archive link here: https://web.archive.org/web/20150214022343/https://board.find-mba.com/general-forum/average-salaries-before-the-mba-39497

I've listed the schools in the FT 2015 ranking, ranked by the average salary of the incoming class. I'd taken the average salary, and the salary increase percentage. What's notable was that the top schools had higher salaries for the student coming in than other schools had for the graduating classes. That shows, among other things, the quality of the intake at the top schools.

What's notable is that there were some schools with low average intake salaries that were in the top half of the FT business school ranking: NUS, CUHK; Purdue; ISB; SDA Bocconi; HKU and Manchester Business School. Those seemed to be good programmes for talented students with lower salaries.

Someone should do the same analysis with the 2020 FT ranking data.

One of my older posts here is offline, so I am posting an archive link here: https://web.archive.org/web/20150214022343/https://board.find-mba.com/general-forum/average-salaries-before-the-mba-39497

I've listed the schools in the FT 2015 ranking, ranked by the average salary of the incoming class. I'd taken the average salary, and the salary increase percentage. What's notable was that the top schools had higher salaries for the student coming in than other schools had for the graduating classes. That shows, among other things, the quality of the intake at the top schools.

What's notable is that there were some schools with low average intake salaries that were in the top half of the FT business school ranking: NUS, CUHK; Purdue; ISB; SDA Bocconi; HKU and Manchester Business School. Those seemed to be good programmes for talented students with lower salaries.

Someone should do the same analysis with the 2020 FT ranking data.
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Duncan

It's at https://find-mba.com/board/general-forum/average-salaries-before-the-mba-39497 

It's at&nbsp;<a href="https://find-mba.com/board/general-forum/average-salaries-before-the-mba-39497">https://find-mba.com/board/general-forum/average-salaries-before-the-mba-39497</a>&nbsp;
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smartcanad...

1) Only problem with FT data is that it is converted to PPP right?  I don't necessarily agree with PPP's relevance for MBA salaries as it is based on baskets of goods that do not reflect the cost of living and lifestyle of a professional / MBA grad.  In particular, PPP results in overstated numbers for graduates of developing countries.  

While the average person in a developing country might be spending 1/4 the living costs of someone in the US (which is what PPP will measure), that does not apply to the average MBA graduate lifestyle who might be spending like 1/2 of an MBA grad in the US.  So the PPP in my example significantly overestimates the US equivalent salaries of graduates from Chinese/Indian schools.  It will also overstate or understate the entering salary based on where the student is from.  I remember when I was completing the FT surveys as a grad and was confused why they needed to know where I used to live pre-MBA.  


2) I have always wondered - is it the input / quality of students that makes the output / salaries of top schools high?  Or is it the school's prestige/quality that gets the student the high salary?  Many studies have been done and none are conclusive.  My guess is the truth is somewhere in the middle.  

This matters because long-term MBA salaries show that the top 25% of grads from average (top 100) schools do just as well / get the same salaries as the bottom 25% of grads from elite (top 15) schools.   There's a lot of university-level data on that available from the US Census (google PSEO data).

So if you're the type of candidate who just barely made it into Northwestern or Chicago (and your profile reflects that), then I think your prospects are no different from someone who goes to University of Colorado, but ended up at the top of their class.  

[Edited by smartcanada on Jun 03, 2020]

1) Only problem with FT data is that it is converted to PPP right?&nbsp; I don't necessarily agree with PPP's relevance for MBA salaries as it is based on baskets of goods that do not reflect the cost of living and lifestyle of a professional / MBA grad.&nbsp; In particular, PPP results in overstated numbers for graduates of developing countries.&nbsp;&nbsp;<div><br></div><div><br></div><div>While the average person in a developing country might be spending 1/4 the living costs of someone in the US (which is what PPP will measure), that does not apply to the average MBA graduate lifestyle who might be spending like 1/2 of an MBA grad in the US.&nbsp; So the PPP in my example significantly overestimates the US equivalent salaries of graduates from Chinese/Indian schools.&nbsp; It will also overstate or understate the entering salary based on where the student is from.&nbsp; I remember when I was completing the FT surveys as a grad and was confused why they needed to know where I used to live pre-MBA.&nbsp;&nbsp;<div><br></div><div><br></div><div><br></div><div>2) I have always wondered - is it the input / quality of students that makes the output / salaries of top schools high?&nbsp; Or is it the school's prestige/quality that gets the student the high salary?&nbsp; Many studies have been done and none are conclusive.&nbsp; My guess is the truth is somewhere in the middle.&nbsp;&nbsp;</div><div><br></div><div><br></div><div>This matters because long-term MBA salaries show that the top 25% of grads from average (top 100) schools do just as well / get the same salaries as the bottom 25% of grads from elite (top 15) schools.&nbsp; &nbsp;There's a lot of university-level data on that available from the US Census (google PSEO data).</div></div><div><br></div><div><br></div><div>So if you're the type of candidate who just barely made it into Northwestern or Chicago (and your profile reflects that), then I think your prospects are no different from someone who goes to University of Colorado, but ended up at the top of their class.&nbsp;&nbsp;</div>
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Duncan

1. Yes. That is the problem but, in practice, I don't think it's the same pool of applicants. Most of the schools in developing countries have very few foreigners.
2. I think candidates perform differently in different settings. People are rarely at the bottom in every subject, and students can be very tightly clustered. But the pool of employers is very different between schools and so outcomes are pretty different. O have worked with a couple of clients who changed schools, and that really changed their direction. 

1. Yes. That is the problem but, in practice, I don't think it's the same pool of applicants. Most of the schools in developing countries have very few foreigners.<div><br></div><div>2. I think candidates perform differently in different settings. People are rarely at the bottom in every subject, and students can be very tightly clustered. But the pool of employers is very different between schools and so outcomes are pretty different. O have worked with a couple of clients who changed schools, and that really changed their direction.&nbsp;</div>
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Larry

2) I have always wondered - is it the input / quality of students that makes the output / salaries of top schools high?  Or is it the school's prestige/quality that gets the student the high salary?  Many studies have been done and none are conclusive.  My guess is the truth is somewhere in the middle.  

This is a really interesting question, and I think you're right, it's a little of both. 

What happens is that schools want to attract corporate recruiters, and to do so they need to recruit students who have the specific qualities that the recruiters are looking for. So that's an aspect as well: to attract good recruiters, they'll need a certain quality of incoming students, regardless of what happens during the MBA. 

[quote]2) I have always wondered - is it the input / quality of students that makes the output / salaries of top schools high?&nbsp; Or is it the school's prestige/quality that gets the student the high salary?&nbsp; Many studies have been done and none are conclusive.&nbsp; My guess is the truth is somewhere in the middle. &nbsp;[/quote]<br><div>This is a really interesting question, and I think you're right, it's a little of both.&nbsp;</div><div><br></div><div><br></div><div>What happens is that schools want to attract corporate recruiters, and to do so they need to recruit students who have the specific qualities that the recruiters are looking for. So that's an aspect as well: to attract good recruiters, they'll need a certain quality of incoming students, regardless of what happens during the MBA.&nbsp;</div>
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mba hipste...

So if you're the type of candidate who just barely made it into Northwestern or Chicago (and your profile reflects that), then I think your prospects are no different from someone who goes to University of Colorado, but ended up at the top of their class.

I dunno. I would think that the recruiting opportunities that will be presented at Northwestern or Chicago will probably be better than at the University of Colorado, even for the 'lower than average students.'

The standards are so high and the competition so intense for spots on these top MBA programs, there aren't really any 'poor' candidates. If there are they probably don't keep up. 

[quote]So if you're the type of candidate who just barely made it into Northwestern or Chicago (and your profile reflects that), then I think your prospects are no different from someone who goes to University of Colorado, but ended up at the top of their class.[/quote]<br>I dunno. I would think that the recruiting opportunities that will be presented at Northwestern or Chicago will probably be better than at the University of Colorado, even for the 'lower than average students.'<br><br>The standards are so high and the competition so intense for spots on these top MBA programs, there aren't really any 'poor' candidates. If there are they probably don't keep up.&nbsp;
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