Many colleges and universities offer MBA programs, and the top business schools are notoriously difficult to get into, since they screen out all but the top performers. Wall Street banks pay top dollar for these high-achieving graduates, both for the prestige associated with their schools, and for access to their network of other high-achieving graduates. (See Reference 2.)
The economic landscape of the United States has seen recent turmoil, but indications of improvement seem apparent. Although the U.S. unemployment rate in January 2011 remains at about 10 percent, employers have indicated a high level of desire for MBA hires, and businesses that do hire MBAs have indicated they plan on increasing hires in the coming months. As the economy improves, many U.S. companies are also growing globally, and will require MBAs willing to work and live in other countries. (See Reference 2.)
According to the recent U.S. Census, members of the workforce with a law, medicine, or business graduate degree will average $4.4 million in their lifetime, compared to someone with a Bachelor's degree, who can expect $2.1 million. According to MSN Money, MBAs working in investment banking at JPMorgan Chase earn around $125,000, plus bonuses, while their colleagues in finance positions without graduate degrees make about half as much. (See Reference 3.)
Obtaining an MBA can be difficult and expensive, and can leave a graduate with an combined undergrad and graduate debt of over $41,000. (See Reference 1.) While the degree will provide job opportunities not available to a substantial percentage of the workforce, it does not automatically ensure employment. Potential MBAs would do well to weigh the risks and develop a long-term strategy to determine whether an MBA has an appropriate risk/benefit ratio for them.