MBA News: Younger MBA Graduates May See Higher Returns on Investment

In recent years, some have questioned whether an MBA is a sound choice with respect to return on investment, but one way of improving this metric may be by stepping into the game earlier. Using data collected as part of its 2015 Global MBA Rankings, the Financial Times (FT) examined the relationship between pay increases and the age of business school graduates. According to the FT, the younger the individual is at the time of graduation, the higher the boost in salary tends to be three years after they completed their MBA program. In North America, the increase was 137%, or $67,000, for graduates aged 24 or younger. To compare, the increase was 63%, or $49,000, for those aged 31 or older.

Of the geographical areas surveyed with information available for all the age groups the FT examined, the difference in the salary percentage increase MBAs saw was most significant between the youngest and oldest groups in Europe, where the former experienced an average increase of 163% and the latter just 61%. Despite the variances in pay, however, 95% of the graduates in the FT’s survey reported that they had accomplished their personal goals with respect to their careers.

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