Can an average MBA candidate make it to an Ivy League school?
MBA Admissions
Second Tier B-Schools - Higher ROI than Ivy League Schools?
According to a recent study, the highest rates of return were found for the second-tier public business schools. The rate of return for Michigan State (Broad) was 42.72 percent. For Illinois (Urbana-Champaign), it was 42.33 percent, and for Iowa (Tippy), it was 39.7 percent. Contrast this with the rate of return for Harvard Business School, which was only 19.7 percent. The University of Chicago (Booth School of Business) was in the last place with only a 13.4 percent rate of return.
How the Study was conducted?
The new study estimated the rate of return for the top 30 MBA programs and 15 second-tier MBA programs in the United States by comparing the cost of degree acquisition with the incremental post-MBA income over an expected work life of 40 years. Tuition and fees and two years of foregone income were used as the cost of the investment. The incremental salary was calculated and used as the investment’s cash inflows.
Reasons for high ROI for Second Tier Public Business Schools
According to the study, these high returns can be credited to two distinct aspects of their programs.