MBA Pay: European & Asian schools catch the U.S. …

According to research reported in BusinessWeek

MBA grads pay at business schools in Europe and Asia increased dramatically in the past couple of years.

Adjusted for local purchasing power, European and Asian MBAs have essentially caught up to U.S. MBAs.

To avoid distortions between countries, the pay levels are stated in “international dollars” that have been adjusted for purchasing power parity.

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The researchers attributed the pay growth in Europe to the growing demand for MBAs in Europe and the geographic proximity of highly ranked European programs to the key labor markets they serve.

Why has MBA pay in the U.S. apparently stalled?

The researchers attribute the relatively slow growth of U.S. MBA pay to several factors, including:

  • post-9/11 visa restrictions in the U.S.
  • the financial crisis
  • growth in the supply of MBA graduates worldwide
  • the higher likelihood that Asian students studying in Europe will return to Asia after graduation
  • the shorter duration and lower cost of most European programs

My POV: Still, $120,000 isn’t shabby …

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