MBA May Mean $40,000 More Income But Not For Black or Hispanic Women
By Robert Stitt
Most MBA graduates believe their program choice was worth it and would take the program again. Even so, not all MBA programs are equal, and neither are the salaries of the graduates.
According to Bloomberg, Black, Hispanic, and American Indians will earn the same average salary as their white and Asian counterparts right out of school. This is true for men and women. Six to eight years later, however, the white and Asian men will, on average, earn over $20,000 a year more than Black, Hispanic, and American Indian men and nearly $40,000 more than underrepresented minority females. The gaps seemed to be even more dramatic when the graduates attendend a big-name institution for their MBA.
A Harvard Business School spokesman, Jim Aisner, said that the Bloomberg study was limited and lacked credence. “We have no statistical data or other information to support this finding,” he noted.
Columbia and Wharton declined to respond to the report.
Bloomberg postulates that part of the pay discrepancies come from the fields that the graduates choose to follow once leaving school. The fields of finance and consulting are typically white and Asian dominated fields and other races are promoted less and make less. Other fields, such as real estate, manufacturing, and government actually favor minority graduates with people of color earning more than whites or Asians.
The study showed that 44 percent of minority MBA grads went into finance and consulting, despite the lower pay for them, and only 8 percent followed the paths of real estate, manufacturing, and government which are more lucrative for them.
According to the study, the average starting pay for all races was $105,000 with top-earning minority men averaging $163,500 and minority women earning an average of $150,000.