Was Earning That Harvard MBA Worth It? — Micromotives

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Micromotives is a blog about behavioral decision making--how do people make decisions in the real world, not just in theory? What types of cognitive and psychological biases influence our thinking, both for better and worse? How do people really decide what products to buy, what stocks to invest in, or where to go for dinner? Insight into these processes can help us become savvier marketers, wiser investors, and better strategic thinkers. More fundamentally, a deeper understanding of the strengths and weaknesses of human reasoning will help us design processes and institutions which have the power to improve all of our lives.

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Was Earning That Harvard MBA Worth It?

As followup to last week’s post on “the management myth”, here’s an excerpt from a New York Times article on the value of an Ivy League MBA. There’s little doubt that an Ivy League MBA earns a premium in the marketplace, but the question remains: is that premium due to the education itself, or to the selection bias of top business schools only accepting candidates who would earn a similar premium with or without the added education?

“The real value of an Ivy League business degree is arguably not the education itself, but the screening of intelligence, drive and past accomplishments that the schools do,” said Ben Dattner, founding principal of Dattner Consulting in New York. “Just like with undergraduate degrees, if you’re smart enough to get into a top-tier school, you’re likely to inspire confidence.”

Agree or disagree?

Previously: The Management Myth

June 14th, 2006

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