Tuesday, July 21, 2015
Business School: Salary Differences Between Bachelor’s and Advanced Degrees
World Education Services
International students: Are you interested in increasing your earning power? Thinking about pursuing an advanced business degree? Data shows that it might pay to do so—literally.
According to a Graduate Management Admission Council (GMAC) 2015 report, the median starting salary for recent MBA graduates in the United States is $100,000, which is nearly double that of bachelor’s degree candidates at $55,000. This differentiation has remained consistent year after year, according to GMAC research. (Side note: The report states that the 2015 median salary for advanced degree holders also marked a $5,000 rise from 2014.)
In terms of other advanced business degrees, the report says a Master of Management graduate earns a median salary of $85,000, whereas a bachelor’s degree holder in the same field earns a median of $57,000. Meanwhile, a Master of Accounting will earn a median salary of $70,000, while a bachelor’s in the field, a median of $51,000. And while a Master of Finance earns a median salary of $85,000, a bachelor’s degree holder earns a median of $59,000.
The Association to Advance Collegiate School of Business, or AACBS, notes on its Best Biz Schools website that although the average salary for advanced business degree graduates varies widely depending on the discipline you pursue and the school you attend, among other factors, salaries are generally higher for holders of master’s degrees.
Of course, your decision shouldn’t just come down to the money. It’s important to weigh other factors as well, including the fact that your graduate school education may be—probably will be—rather costly itself. The Princeton Review offers a list of questions to ask yourself before deciding to earn your MBA, for example.