Best of the Best: Differentiators in Outcomes of Selective Private Business Schools

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Authors

Crumly, Jonathan
Barry, Michael
Falk, Carter

Issue Date

2020

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Presentation

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en_US

Keywords

Scholarship Sewanee 2020 , Economics , Econometrics , Linear regression model , Business school , Statistical significance

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Abstract

This study investigates the impact of a variety of factors on outcomes for graduates of elite private business schools in the United States from 2015-2019. Results show that tuition, class size, and age, all have a statistically significant impact on median base salary in the first year after graduation, but that location and average work experience have no statistically significant bearing on that outcome. For every $1,000 increase in tuition there is a $551 increase in median base salary, insinuating that graduates indeed get more “bang for their buck.” The regression also shows that for an increase of 100 students above the mean class size, there is an increase of $1,065 in median base salary. Finally, MBA candidates who enroll at 30 will make $12,006 less than candidates who enroll at 27. These findings help further the discussion about differentiators of outcomes at top-ranked and highly selective business schools for a degree that is highly cyclical in an economy that, until the COVID-19 pandemic, was experiencing its longest economic expansion on record.

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University of the South

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