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The international market for MBA qualifications: The relationship between tuition fees and applications

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  • Elliott, Caroline
  • Soo, Kwok Tong

Abstract

This paper explores the relationship between tuition fees charged by MBA programmes and the number of applications to these programmes, using a panel dataset comprising universities from countries across the world. Using Three-Stage-Least-Squares methods for simultaneous equations, we find a two-way relationship between tuition fees and applications: higher application numbers encourage universities to charge higher fees in the future, but higher fees in turn curtail application numbers. We find evidence that higher GMAT scores of existing students increase applications, as do higher post MBA salaries. Meanwhile, university and programme professional accreditations do not impact on student application choices, nor do alumni ratings of programme quality. Published MBA programme rankings appear to have little impact on applications, and where an effect can be identified, it appears that a better ranking discourages applications. Only US News rankings have a significant effect on applicants to US MBA programmes.

Suggested Citation

  • Elliott, Caroline & Soo, Kwok Tong, 2013. "The international market for MBA qualifications: The relationship between tuition fees and applications," Economics of Education Review, Elsevier, vol. 34(C), pages 162-174.
    • Handle: RePEc:eee:ecoedu:v:34:y:2013:i:c:p:162-174
    DOI: 10.1016/j.econedurev.2013.02.006
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    Cited by:

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    2. Montserrat Entrialgo & Víctor Iglesias & Frank Müller, 2019. "Are European Part-Time MBA Programs Designed to Foster Entrepreneurial Minds? An Exploratory Study," Administrative Sciences, MDPI, vol. 9(3), pages 1-12, June.
    3. Wei Li & Yongqin Xi & Jiayang Lu & Feimei Wu & Pengfei Wu, 2019. "Interactive relationships between industrial, urban, agricultural, information, and green development," Energy & Environment, , vol. 30(6), pages 991-1009, September.
    4. Jacqmin, Julien & Lefebvre, Mathieu, 2021. "The effect of international accreditations on students’ revealed preferences: Evidence from French Business schools," Economics of Education Review, Elsevier, vol. 85(C).
    5. Fumitoshi Mizutani & Noriyoshi Nakayama & Tomoyasu Tanaka, 2015. "Determinants of University Tuition in Japan," Discussion Papers 2015-08, Kobe University, Graduate School of Business Administration.
    6. Gicheva, Dora, 2016. "Student loans or marriage? A look at the highly educated," Economics of Education Review, Elsevier, vol. 53(C), pages 207-216.
    7. Gregory Gilpin & Michael Kofoed, 2020. "Employer-Sponsored Education Assistance and Graduate Program Choice, Cost, and Finance," Research in Higher Education, Springer;Association for Institutional Research, vol. 61(4), pages 431-458, June.
    8. Ralf Minor, 2023. "How tuition fees affected student enrollment at higher education institutions: the aftermath of a German quasi-experiment," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-19, December.
    9. Havranek, Tomas & Irsova, Zuzana & Zeynalova, Olesia, 2017. "Tuition Reduces Enrollment Less Than Commonly Thought," MPRA Paper 78813, University Library of Munich, Germany.

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    More about this item

    Keywords

    MBAs; Tuition fees; Applications; Simultaneous equations;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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