The Effect of Tuition and Opportunity Cost on the Pursuit and Completion of a Graduate Management Degree

Abstract

In this study, the authors used multivariate statistical analysis to examine the impact of cost on the likelihood that a person will both enroll in and complete a Master of Business Administration (MBA) program. They considered both the explicit cost of paying tuition and the implicit cost, or opportunity cost, of earnings foregone while in school. Results suggest that tuition is not a major impediment to either pursuing or completing an MBA. However, high opportunity cost tends to reduce enrollment and degree completion.

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