Measuring the Economic Value of Pre-MBA Work Experience

Abstract

Pre-MBA work experience is required for admission to many graduate schools of business. In the present study, MBA graduates with a wide range of pre-MBA work experience were surveyed to assess the economic value of such work experience. No evidence was found of a systematic financial advantage to students from working for several years before enrolling in a full-time MBA program. Although students with less work experience had lower starting salaries, the difference was overcome by the advantage of getting an early start on their careers. Results suggest prospective MBA students may incur a long-term financial penalty by delaying their matriculation.

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