henry copeland:
Business schools suffer from a bad case of Harvard and Stanford envy: they dream of having fancy buildings and star professors. But the cost of participating in the arms race is going up—Columbia Business School is spending $600m on a campus—and the supply of people who are willing to pay top-dollar for an MBA is falling. The number of people taking the GMAT, which regulates admission to many business schools, fell by 50,000 last year. The number of Americans taking the test has fallen particularly sharply, forcing mid-ranking schools to dig deeper into their admission pool or rely on recruiting Asians, who will increasingly have business schools of their own to choose from. The reason for the softening demand is that returns on investment are also falling. The Graduate Management Admission Council, which conducted a survey of graduates of American business schools, found that 8% of the class of 2012 did not have a job when they graduated.
- www.economist.com
- www.economist.com