Abstract
Controversy continues to exist regarding the value of the MBA degree. This study draws from human capital theory to address this controversy by examining the impact of the MBA degree on career success using a large, nationally representative, longitudinal sample of MBA degree holders and non-MBAs. We use objective measures of salary, promotions, and managerial attainment to define career success. The MBA degree did significantly increase salary, promotions, and managerial status, even when controlling for job type and other variables. Results demonstrate the importance of including multiple human capital and structural variables in any examination of the value of the MBA degree to gain a more complete picture of the factors that influence career success. Additionally, MBA school tier partially mediated the relationship between pre-MBA human capital (e.g., undergraduate GPA, GMAT score) and career success outcomes, suggesting that MBA school rankings do appear to matter to employers. We discuss implications of our findings for companies, potential students, and business schools, and identify future research needs.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
