An oversaturated market is not only a fear for MBA students.
The schools themselves are in danger as the wild growth of MBA graduates exceeds the demand for students, according to an article by Harvard Business Review.
In the past 10 years, MBA degrees have grown by 74 percent, a strain that could make it difficult for business schools to stay in business. For students, this means the future is even more unknown, according to the article.
Financial institutions, which are major absorbers of MBAs, may cut back, making high starting salaries and sign-on bonuses rare. Those who are employed in business schools will have shakier standing.
“Just as astonished senior partners in law firms learned that when the economics don't work, neither does lifetime employment, so too will astonished tenured professors,” said Rita McGrath, a professor at Columbia Business School. “If your school goes out of business, tenure doesn't mean much.”
However, this strain could cause new models for business schools. McGrath said she hopes this will be the long-term effect.
- 25 states with the lowest levels of personal...
- 5 ways to save money, improve quality of life...
- Why you must teach your children about money
- 9 startup companies perfect for your family
- Who’s the boss of your finances?
- U.S. economy grows at scorching 4 percent in...
- BYU grad strikes gold teaching via online...
- Dave Ramsey says: Don't touch that 529 plan
- Dave Ramsey says: Don't leave an estate... 13
- U.S. economy grows at scorching 4... 12
- BYU grad strikes gold teaching via... 12
- Dave Ramsey says: Don't touch that 529... 8
- Study: 35 percent in US facing debt... 5
- Consumer index climbs to record level... 4
- Plan to simplify 2015 health renewals... 2
- Study: 35 percent in US facing debt... 2