Is an MBA Bubble Popping?

Jordan Weissmann, Dec 27, 2013
Commentary by Stephen Downes

There has been discussion regading whether the 'MBA bubble' is popping following the release of a report by the Graduate Management Admission Council saying MBAs graduates this year will be given the same offers they were last year. That may seem like the tiniest of indicators, but as John Byrne says, "it's become common sport to bash the world's most successful educational degree in the past half century." But is it true? In a follow-up report for Poets and Quants, Byrne argues that "the optimistic vibe in MBA hiring has apparently met or exceeded expectations," citing the same report. Top schools for job offers were Emory, Wharton and Columbia. But Bloomberg is negative, noting that pay hasn't kept up with inflation. And the Atlantic explicitly uses the 'bubble' word, pointing out that "Michigan State's Collegiate Employment Research Center projected that recruitment would tumble nearly 25 percent next near, based on a survey of hiring plans by some 6,500 employers."

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