Returns to Field of Study Versus School Quality: MBA Selection on Observed and Unobserved Heterogeneity

20 Pages Posted: 29 Jun 2011

See all articles by Andrew Hussey

Andrew Hussey

University of Memphis - Economics

Wayne A. Grove

Le Moyne College - Department of Economics

Date Written: July 2011

Abstract

While a substantial literature has established returns to college major and to school quality, we offer the first such estimates for Master's of Business Administration (MBAs). To control for their nonrandom selection of fields, we estimate the returns to MBA concentrations using both ordinary least squares (OLS) with detailed control variables and including individual fixed effects. We find approximately 7% returns for most MBAs but roughly double that for finance and management information systems (MIS). Thus, MBA area of study can matter as much or more than program quality: only attending a top 10, but not 11‐25, MBA program trumped studying finance and MIS at a nontop 25 program.

JEL Classification: I21, J30, J24

Suggested Citation

Hussey, Andrew J. and Grove, Wayne A., Returns to Field of Study Versus School Quality: MBA Selection on Observed and Unobserved Heterogeneity (July 2011). Economic Inquiry, Vol. 49, Issue 3, pp. 730-749, 2011, Available at SSRN: https://ssrn.com/abstract=1874545 or http://dx.doi.org/10.1111/j.1465-7295.2010.00292.x

Andrew J. Hussey

University of Memphis - Economics ( email )

Memphis, TN 38152
United States

Wayne A. Grove (Contact Author)

Le Moyne College - Department of Economics ( email )

1419 Salt Springs Road
Syraucse, NY 13214

HOME PAGE: http://webserver.lemoyne.edu/grovewa/

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