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Measuring the perceived value of an MBA degree

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  • Carlos Madeira

Abstract

Using a survey of income expectations I find that MBA students perceive significant income gains from getting an MBA degree. The median Kellogg student expects that the degree will increase his median earnings relative to a situation without a degree in 18, 29 and 40 percent log-points within 1, 5 and 15 years after completion, respectively. The uncertainty of students about their future earnings increases after the completion of the degree, especially for longer horizons. There is substantial heterogeneity in the perception of income gains from the MBA and earnings risk, with declining returns observed for students of higher ability.

Suggested Citation

  • Carlos Madeira, 2020. "Measuring the perceived value of an MBA degree," Working Papers Central Bank of Chile 876, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:876
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    References listed on IDEAS

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