Wednesday, August 22, 2012

MBA Dropouts: Ditching School for Work

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MBA Express

Aug 22, 2012

This Week's Top Story

This Week's Top Story - MBA Dropouts: Ditching School for Work

MBA Dropouts: Ditching School for Work

Having landed tech jobs they wanted, MBAs at top schools are leaving the classroom behind to pursue their careers

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This week in MBA Express

Dear Reader:

About two out of every five college students leave college without a degree, but dropping out is not something we normally associate with MBA students. And for good reason: they rarely do it. As our intern Victoria Black reports, when they do, it's usually for the best kind of reason: a job. But the fact that any MBAs at all decide to drop out speaks volumes about the perceived value of the degree.

Yes, MBAs get paid more at graduation, but those few who land immediate job offers halfway through also get paid more, suggesting that for some employers the value of the MBA is largely in admissions: they need B-schools to cull the wheat from the chaff and that's all. From a student's perspective all this suggests that the real value of the MBA resides, at least for some, in the connections they make in B-school. As one student told us, after a year at Kellogg: "I think I got 90 percent of the value and I don't think I would have gained much more had I stayed."

That the vast majority of MBA students do decide to stick it out to the end (and most job offers made halfway through are contingent on the student completing the degree) suggests that both students and employers do see at least some value in the second year, and in the degree itself. And that shows no sign of changing any time soon.

Louis Lavelle, Business Schools Editor, Bloomberg Businessweek

Louis Lavelle

Louis Lavelle
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