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MBA vs DBA

dhl3dhl3 Posts: 2,666Registered User Senior Member
edited December 2006 in Business School - MBA


MBA will significantly increase the salary compared to someone who's only completed B.A.

However, I haven't heard of much people who's approached DBA (Doctor of Business Administration) or Ph.D in Business.

In many perception, Doctorate Degree is THE HIGHEST level of degree possible in the current education system, and naturally the salary goes up.

Does this also apply to Business Administration?
I mean, someone who has B.A. will start as Associate at a Consulting or I-banking firm.

Someone with MBA will start at the Management Level.

Will someone with a DBA or Ph.D start at a higher level than MBA?

Is there a difference between the two?
Post edited by dhl3 on

Replies to: MBA vs DBA

  • Burb ParentBurb Parent Posts: 2,100Registered User Senior Member
    Generally, a DBA will teach at a business school or conduct research. While some DBAs do well because they can command high consulting fees, if income potential is on your mind, an MBA from a top school is the ticket.
  • sakkysakky Posts: 14,759- Senior Member
    In many perception, Doctorate Degree is THE HIGHEST level of degree possible in the current education system, and naturally the salary goes up

    Well, not enough to justify the extra time you have to spend in school.

    If what you care about is money, a doctorate is almost always a losing proposition simply because of a doctorate can take anywhere from 4-6 years to complete, and a significant percentage (probably well over half) of all incoming doctoral students will not actually complete the doctorate, either because they can't pass their qualification exams, or (more likely) because they cannot or don't want to complete a viable thesis. So you can flounder around for years, and never get the degree. Contrast that with an MBA (or other professional degree) where not only does it take far less time to complete, but more likely, you are basically assured of completing the degree.

    What you have to keep in mind is that time is money. If you want to make money, then it behooves you to get out into the workforce as quickly as possible. Not sit around in school for extra years.

    Now, if you want to become an academic, then obviously that's a different story.
    Does this also apply to Business Administration?
    I mean, someone who has B.A. will start as Associate at a Consulting or I-banking firm.

    Someone with MBA will start at the Management Level.

    Will someone with a DBA or Ph.D start at a higher level than MBA

    Again, not really. Most PhD's start off at the same level as their MBA, if the previous working experience was equitable.

    Now, a DBA who has a specialized niche will start off higher, it's not by enough to justify the extra time you have to spend in school.

    It is almost always true that most business academics (i.e. B-school profs) could make more money in the private sector. This is especially true in the finance world, where private sector compensation rises far faster than academic salaries. I hear that some private equity firms are paying over 350-400k (salary + bonus) to first-year MBA's. It's hard to beat that.

    So the point is, if you just care about money, just take your MBA and run off to the private sector. You should consider a Phd or a DBA only if you actually want to become an academic. From a purely financial standpoint, it's not worth it to stay in school that long with no assurance that you will actually get the degree.
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