Is there an efficient frontier in MBA selection?


Duncan

I have tweeted an interesting chart at https://twitter.com/DuncanChapple/status/697215300891250689 which compares the FT's data on the rankings of European business schools MBA programmes and their alumni salaries. There is a larger version on dropbox at http://bit.ly/1nWyyDp

Of course it would be wrong to reduce school selection to just these two factors, but the data suggest a few things. If we assume that lower-ranked schools are easier to get into, and that higher salaries are preferable, then a possible school selection strategy arises. Other things being equal, it makes no sense to apply to a higher-ranked school with a lower salary. No-one should apply to HEC if IMD is available. No-one should go to Imperial or Manchester if Cranfield is easier to enter and better paid. Similarly, it makes little sense to apply to Lancaster or ESMT if UCD or Birmingham are options. While EADA exists, there's little reason to apply to Bradford or Grenoble.

Of course, these schools are in different settings, but it certainly does pose question about the outlier schools. How can Lancaster really stay in the top 20 European schools if the #30 school (EDHEC) gets the same salary. How long can Bradford, Lancaster, Rotterdam and Imperial be 'overvalued' in this way?

[Edited by Duncan on Feb 10, 2016]

I have tweeted an interesting chart at https://twitter.com/DuncanChapple/status/697215300891250689 which compares the FT's data on the rankings of European business schools MBA programmes and their alumni salaries. There is a larger version on dropbox at http://bit.ly/1nWyyDp

Of course it would be wrong to reduce school selection to just these two factors, but the data suggest a few things. If we assume that lower-ranked schools are easier to get into, and that higher salaries are preferable, then a possible school selection strategy arises. Other things being equal, it makes no sense to apply to a higher-ranked school with a lower salary. No-one should apply to HEC if IMD is available. No-one should go to Imperial or Manchester if Cranfield is easier to enter and better paid. Similarly, it makes little sense to apply to Lancaster or ESMT if UCD or Birmingham are options. While EADA exists, there's little reason to apply to Bradford or Grenoble.

Of course, these schools are in different settings, but it certainly does pose question about the outlier schools. How can Lancaster really stay in the top 20 European schools if the #30 school (EDHEC) gets the same salary. How long can Bradford, Lancaster, Rotterdam and Imperial be 'overvalued' in this way?
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yipkc

I have tweeted an interesting chart at https://twitter.com/DuncanChapple/status/697215300891250689 which compares the FT's data on the rankings of European business schools MBA programmes and their alumni salaries. There is a larger version on dropbox at http://bit.ly/1nWyyDp

Of course it would be wrong to reduce school selection to just these two factors, but the data suggest a few things. If we assume that lower-ranked schools are easier to get into, and that higher salaries are preferable, then a possible school selection strategy arises. Other things being equal, it makes no sense to apply to a higher-ranked school with a lower salary. No-one should apply to HEC if IMD is available. No-one should go to Imperial or Manchester if Cranfield is easier to enter and better paid. Similarly, it makes little sense to apply to Lancaster or ESMT is UCD or Birmingham are options. While EADA exists, there's little reason to apply to Bradford or Grenoble.

Of course, these schools are in different settings, but it certainly does pose question about the outlier schools. How can Lancaster really stay in the top 20 European schools if the #30 school (EDHEC) gets the same salary. How long can Bradford, Lancaster, Rotterdam and Imperial be 'overvalued' in this way?


A well depicted chart on selection of business schools. Well done! :)

[quote]I have tweeted an interesting chart at https://twitter.com/DuncanChapple/status/697215300891250689 which compares the FT's data on the rankings of European business schools MBA programmes and their alumni salaries. There is a larger version on dropbox at http://bit.ly/1nWyyDp

Of course it would be wrong to reduce school selection to just these two factors, but the data suggest a few things. If we assume that lower-ranked schools are easier to get into, and that higher salaries are preferable, then a possible school selection strategy arises. Other things being equal, it makes no sense to apply to a higher-ranked school with a lower salary. No-one should apply to HEC if IMD is available. No-one should go to Imperial or Manchester if Cranfield is easier to enter and better paid. Similarly, it makes little sense to apply to Lancaster or ESMT is UCD or Birmingham are options. While EADA exists, there's little reason to apply to Bradford or Grenoble.

Of course, these schools are in different settings, but it certainly does pose question about the outlier schools. How can Lancaster really stay in the top 20 European schools if the #30 school (EDHEC) gets the same salary. How long can Bradford, Lancaster, Rotterdam and Imperial be 'overvalued' in this way?[/quote]

A well depicted chart on selection of business schools. Well done! :)
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Razors Edg...


Of course, these schools are in different settings, but it certainly does pose question about the outlier schools. How can Lancaster really stay in the top 20 European schools if the #30 school (EDHEC) gets the same salary. How long can Bradford, Lancaster, Rotterdam and Imperial be 'overvalued' in this way?

One thing I can think if is that some 20 percent of the rankings weight is based on salary increase - so even though EDHEC and Lancaster have similar post-graduation salaries, Lancaster's salary increase is higher than EDHEC, giving it somewhat of an edge.

But that doesn't explain it all, there has to be another factor, since Michigan - Broad also has similar salary outcomes but stronger salary growth and is ranked much lower than Lancaster.

[quote]
Of course, these schools are in different settings, but it certainly does pose question about the outlier schools. How can Lancaster really stay in the top 20 European schools if the #30 school (EDHEC) gets the same salary. How long can Bradford, Lancaster, Rotterdam and Imperial be 'overvalued' in this way?[/quote]
One thing I can think if is that some 20 percent of the rankings weight is based on salary increase - so even though EDHEC and Lancaster have similar post-graduation salaries, Lancaster's salary increase is higher than EDHEC, giving it somewhat of an edge.

But that doesn't explain it all, there has to be another factor, since Michigan - Broad also has similar salary outcomes but stronger salary growth and is ranked much lower than Lancaster.
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Duncan

An excellent point and, indeed, it is no surprise that EDHEC students accept a discount on exchange for living on the Riviera! But in so far as the modest increase means that EDHEC students have better pay on the way in, and thus more experience, that might make it a better cohort to be part of and one that should continue to improve in standing.

[Edited by Duncan on Sep 07, 2017]

An excellent point and, indeed, it is no surprise that EDHEC students accept a discount on exchange for living on the Riviera! But in so far as the modest increase means that EDHEC students have better pay on the way in, and thus more experience, that might make it a better cohort to be part of and one that should continue to improve in standing.
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This is one more good comparison graph, Duncan!
I am not able to view the print name of (1) the school just beneath Alliance Manchester and (2) the school just ahead of HHL Leipzig & below EADA. Can someone please help me with these two names?

This is one more good comparison graph, Duncan!
I am not able to view the print name of (1) the school just beneath Alliance Manchester and (2) the school just ahead of HHL Leipzig & below EADA. Can someone please help me with these two names?
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Duncan

Under Alliance MBA are the partner schools in the Lisbon MBA, which have the same ranking. Copenhagen is under EADA.

Under Alliance MBA are the partner schools in the Lisbon MBA, which have the same ranking. Copenhagen is under EADA.
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Thank you Duncan

Thank you Duncan
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Razors Edg...

An excellent point and, indeed, it is no surprise that EDHEC students accept a discount on exchange for living on the Riviera! But in so far as the Lowe increase means that EDHEC students have better pay on the way in, and thus more experience, that might make it a better cohort to be part of and one that should continue to improve in standing.

Good point. On a sidenote I'm surprised that BYU is ranked so low, given its salary increase + overall salary stats, in comparison to USD. I feel like the school should be ranked a bit higher.

[quote]An excellent point and, indeed, it is no surprise that EDHEC students accept a discount on exchange for living on the Riviera! But in so far as the Lowe increase means that EDHEC students have better pay on the way in, and thus more experience, that might make it a better cohort to be part of and one that should continue to improve in standing. [/quote]
Good point. On a sidenote I'm surprised that BYU is ranked so low, given its salary increase + overall salary stats, in comparison to USD. I feel like the school should be ranked a bit higher.
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Duncan

Indeed, but it's not a very diverse cohort and the Mormon specificities produce some constraints.

Indeed, but it's not a very diverse cohort and the Mormon specificities produce some constraints.
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Neoma Hope

Dear Duncan! 
This is a very interesting article to read! However I felt one point strongly that these details were published in 2016, do we need to revisit the statistics or they still hold the position? 

Things might have changed in 5 years and post pandemic the whole dynamic is getting shifted and I feel the changes are invisible currently. Only time will tell, whats going to happen! 

Best
Neo 

Dear Duncan!&nbsp;<br>This is a very interesting article to read! However I felt one point strongly that these details were published in 2016, do we need to revisit the statistics or they still hold the position?&nbsp;<br><br>Things might have changed in 5 years and post pandemic the whole dynamic is getting shifted and I feel the changes are invisible currently. Only time will tell, whats going to happen!&nbsp;<br><br>Best<br>Neo&nbsp;
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Duncan

The numbers will certainly have changed but the broad trends will probably be the same. If you have the time, it would be lovely to update the diagram.  

The numbers will certainly have changed but the broad trends will probably be the same. If you have the time, it would be lovely to update the diagram.&nbsp;&nbsp;
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