Predicting Compensation Among MBA Graduates Five and Ten Years After Graduation

This paper reports regression results to predict earnings five and ten years after graduation for MBA graduates. All regression models have been double cross validated and also validated against a new set of 70 individuals. Separate analyses were run from three information sets: (1) the data available at entrance to the MBA program, (2) data available at graduation from the program, and (3) data available five years after graduation. The values of the validated multiple correlation coefficient (R) to predict ten year earnings from the three data sets were .38, .45, and .65 respectively. Significant predictor variables included Harrell’s High Earners Scale and second year grade point average. Age at entrance was significant in predicting five year earnings but not ten year earnings.