Economics with Dr. A
Econ with Dr. A
Pick the right MBA

Pick the right MBA

A recent analysis by the ⁠Wall Street Journal⁠ sheds light on a concerning trend: the time between graduation and employment for Ivy League MBA graduates is widening. Harvard Business School reported that 20% of its job-seeking 2023 M.B.A. graduates were still on the job hunt three months post-graduation, a notable increase from 8% in 2021. Similar patterns are observed at Stanford's Graduate School of Business and the Massachusetts Institute of Technology's Sloan School of Management.

Historically, an MBA was viewed as a robust investment, often guaranteeing a lucrative return through high-salary roles shortly after graduation. The more prestigious the institution name, the higher the tuition, and higher the demand for their graduates. The landscape, however, is evolving. A significant portion of recent MBA graduates, including those from top-tier institutions, find themselves in a prolonged job-hunting limbo, marking a stark contrast from the trends observed just a few years prior.

The root of this shift can be attributed to several factors:

  1. Industry Dynamics: Key sectors traditionally known for absorbing MBA talent — consulting, tech, and finance — are witnessing a noticeable dip in hiring rates. 

  2. Experience Over Pedigree: The corporate world is increasingly prioritizing hands-on experience over academic credentials. This shift places career switchers, who sought an MBA as a transformative stepping stone, at a disadvantage.

  3. Macro-economic Signals: This trend might also be symptomatic of a broader slowdown in the labor market, with the effects first manifesting in white-collar job sectors.

What's behind this shift?

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Economics with Dr. A
Econ with Dr. A
Economics with Dr. A is educational content focused on explaining business concepts beyond the headlines to help young professionals navigate the complexity of the world they live in. We leverage the power of storytelling to make business relevant.
As a professor, I take mentorship seriously. I include students in my research and podcasts. By working with me, they learn how to communicate economic information, build community, and work in teams.
Abdullah Al Bahrani, Associate Professor and Associate Dean at Haile College of Business at NKU
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