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RETURNS TO FIELD OF STUDY VERSUS SCHOOL QUALITY: MBA SELECTION ON OBSERVED AND UNOBSERVED HETEROGENEITY
Author(s) -
GROVE WAYNE A.,
HUSSEY ANDREW
Publication year - 2011
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.2010.00292.x
Subject(s) - ordinary least squares , quality (philosophy) , selection (genetic algorithm) , economics , instrumental variable , control (management) , econometrics , field (mathematics) , marketing , management , mathematics , business , computer science , physics , artificial intelligence , pure mathematics , quantum mechanics
While a substantial literature has established returns to college major and to school quality, we offer the first such estimates for Master's of Business Administration (MBAs). To control for their nonrandom selection of fields, we estimate the returns to MBA concentrations using both ordinary least squares (OLS) with detailed control variables and including individual fixed effects. We find approximately 7% returns for most MBAs but roughly double that for finance and management information systems (MIS). Thus, MBA area of study can matter as much or more than program quality: only attending a top 10, but not 11‐25, MBA program trumped studying finance and MIS at a nontop 25 program. ( JEL I21, J30, J24)