Implications of MBA Durability for Providers of Masters in Business Administration Degrees

摘要

The Masters in Business Administration degree is a popular graduate degree offering the promise of employment at high income levels. MBA enrollment rates have generally increased since the degree was first established at the end of the 20th century. Once granted, an MBA degree remains with its recipient for the remainder of their lifetime. Considering the MBA degree as a durable good, a dynamic diffusion model is used to explore the eventual saturation of MBA enrollments in the US. Reference data is used to ground the model results and to generate possible future enrollment rate scenarios. Sensitivity analysis is performed on model parameters to explore policy decisions for the benefit of MBA degree granting institutions.