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