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Financial Times Reports on Changing B-School Trends in the U.S.

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Some facts:

  • When the Financial Times began their global MBA rankings in 1999, 20 out of the 25 top business schools on the list were from the U.S. The remaining five were European b-schools. In 2010, of the 25 top international business schools, 11 are from the U.S., 11 are European, and three are Asian business schools.
  • The return on investment for b-schools in the U.S. has dropped in the last few years. Between the years 2000 and 2003, rankings revealed that alumni from 20 of the top 25 b-schools received, on average, at least a 150% salary increase over a five-year period. Today, U.S. b-school alumni cannot report a salary increase of more than 131%, and on Yale SOM alumni can even claim that much. One reason for this is that average salaries upon entering business school have risen, but salaries reported three years after graduation have either remained stable, or declined.
  • With an increase in school fees (and subsequent debt) in the U.S., further affecting the return on investment. This offers yet another reason why top U.S. MBA programs are slipping in the FT rankings.
  • U.S. schools, once the forerunners in the international research and education community, have done little in recent years to pierce the growing European and Asian research communities, which have now surpassed American b-schools when it comes to providing an international experience. Only a very few b-schools in the U.S. report having more than 50% of their students from outside the U.S. (Thunderbird School of Global Management) or more than 50% of faculty from the international community (Columbia).

(Source: "US schools see their power begin to wane," from FT.com)

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