MBA Grads in the Recession
This article conveys that MBAs and business undergrads who graduate during an economic downturn have much lower lifetime earnings, sometimes by millions of dollars. A Citigroup spokeswoman said their offers were down 10 to 15%. One study showed that for every percentage-point increase in the unemployment rate at graduation, there was a 7% to 8% initial wage loss. This loss is multiplied when the grad's annual raise comes around and there's not as much to multiply. Different industries are also more apt to hire than others during economic downturns, and so a grad's entire career path may have to be shifted. So how should grads combat the sagging market? The article suggests that students should stay in school until the economy picks up again, arguing that it may hurt in the short run, but it will pay off in the long run. I'm not so sure on that. Although it's always great to be learning, if you aren't going to use additional advanced degrees, it doesn't seem worth it to go in debt for it. I think we'll have to just take the economy as it is and try to make money with a degree instead of slowing down school and continuing a part-time, low-wage college job.