Archive for the ‘Compensation – Pay’ Category

Nums: Millennials closing the gender pay gap … but there still is one.

December 13, 2013

Hot off the presses …

A Pew Research analysis of survey and census data concludes that that “today’s young women are the first in modern history to start their work lives at near parity with men.”

That’s good news.

Specifically, in 2012, among workers ages 25 to 34, women’s hourly earnings were 93% those of men …. that’s up from about 85% in 2000.

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The bad news is that there’s still a 7% gap.

And, that’s despite the fact that “women in the younger age cohort were significantly more likely than their male counterparts to have completed a bachelor’s degree — 38% versus 31% in 2013.”

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At least the trend is right.

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$$$: How much do MBAs make right out of school?

January 28, 2013

Answer: It depends on a person’s “major” (i.e. finance folks tend to make more), their background before MBA school, and the b-school they attend.

According to NerdWallet, the average MBA student will earn $113,730 straight out of graduation, which includes a signing bonus of $18,764.

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Stanford University leads with an average total compensation of $146,677.

Check out Nerdwallet’s Top 20 List … and rejoice, MSB is on it !

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$$$: How much is a degree worth?

January 9, 2013

Answer: About a million bucks.

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Here’s the data …

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WSJ: “Smaller Paycheck Awaits M.B.A.s”

January 7, 2013

Don’t fret, MSBers.

Today’s WSJ article — which quotes MSB prof Brooks Holtom (below) — portrays a dismal ROI picture for the typical MBA … but points out that the economic crunch is not as severe for prestigious school grads (think, MSB).

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Debt-to-compensation ratio

First the numbers.

The WSJ tracked the average comp levels of young MBAs and matched it against their school debt loads.

The conclusion: an average young MBA has carries a school debt roughly equal to 1-years gross compensation … call it about 2 years of after-tax comp.

Note that the gross comp to student debt ratio was about 4-to-1 in 2001 … during the dotcom land rush.

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So, what’s going on?

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Uh-oh: Do female MBAs get paid the same as male counterparts?

December 30, 2012

Answer: The pay gap among graduates of elite business schools is widening, according to new research from Bloomberg Businessweek’s biennial survey of MBA graduates.

Female grads of top MBA programs command only 93 percent of the starting pay of their male classmates. The gap gets bigger as years go by.

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Here are some specific findings …

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How does the unemployment rate impact starting salaries?

August 29, 2012

Answer: Starting salaries tend to drop & to 8 percentage points for each percentage point increase in the unemployment rate … and it can take up to 15 years to get back to “normal” levels.

Lisa Kahn, a Yale School of Management economist analyzed government data  during and after the deep 1980s recession.

She  found that for each percentage-point increase in the unemployment rate, those with the misfortune to graduate during the recession earned 7% to 8% less in their first year out than comparable workers who graduated in better times.

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The effect persisted over many years, with recession-era grads earning 4% to 5% less by their 12th year out of college, and 2% less by their 18th year out.

For example, a man who graduated in December 1982 when unemployment was at 10.8% made, on average, 23% less his first year out of college and 6.6% less 18 years out than one who graduated in May 1981 when the unemployment rate was 7.5%.

For a typical worker, that would mean earning $100,000 less over the 18-year period.

Source

Takeaway: High unemployment rates isn’t just somebody else’s problem …

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