This Is Why US MBA Programs Are Dominating Rankings

US b-schools are dominating the global rankings.

And according to a recent report by Bloomberg Businessweek, it all comes down to money.

Bloomberg Businessweek’s most recent “Best B-Schools” ranking saw only one school, IMD in Switzerland, make it in the top 10. Among the top 30, only four schools outside of the US were listed.

Money Rules All

According to survey data collected by Bloomberg, respondents listed the “potential for high-paying work” after graduation as the number one factor when it comes to choosing a b-school.

That has a lot of influence when it comes to actually ranking b-schools.

For instance, in Bloomberg’s ranking, compensation is weighted more heavily than other factors such as networking, learning, and entrepreneurship.

And American b-schools tend to offer the highest compensation post-grad.

According to Bloomberg, currently employed MBA grads of US b-schools had a median salary of $145,000 a year. That’s 16% more than MBA grads of non-US b-schools, who made a median salary of $125,000.

The Role of Geography

One reason why American grads make more is simply due to geography.

According to GMAC’s 2018 Corporate Recruiters Survey Report, US b-school grads tend to make more money due to the fact that they take jobs in the US, where MBA salaries are higher.

Nearly 56% of US employers also offer signing bonuses for MBA grads, according to the report. Other countries aren’t as generous. In Asian-Pacific countries, only 36% offer bonuses. In Latin America, the number is 30%. And in European countries, signing bonuses are only doled out by 20% of companies.

Worldwide Value

Part of the appeal and interest of the US MBA degree is its value worldwide.

“If you’re from India or China, it is Harvard and MIT that you dream about,” Marcelo Barros, founder of International Advantage, which offers career counseling services to schools and international students seeking jobs in the U.S., tells Bloomberg Businessweek.” In the eyes of applicants, more than any other country, a U.S. business degree has better global recognition and provides a chance for a better life and better career opportunities.”

Sources: Bloomberg Businessweek, GMAC