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NextGen Magazine

 
 

Study: MBA Narrows, But Does Not Close, Pay Gap for People of Color

By:
Chris Gaetano
Published Date:
Feb 6, 2019
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A recent study has found that while an MBA certainly helps close the gap between people of color and their white colleagues, it far from eliminates it, with graduates identifying as black, Hispanic or Native-American still making significantly less than their white counterparts, despite an advanced degree, according to the Wall Street Journal. The study, done by the Forté Foundation, which aims to highlight diversity issues in the business world, found that white MBA students going into MBA programs earned an average of $71,294, while students of color earned an average of $57,640, a 24 percent gap. Once they graduated, the 900-person survey found that nonwhites made the biggest gain, with earnings increasing by an average of 76 percent, versus their white peers, who gained an average of 65 percent. However, in absolute numbers, there remains a significant racial gap of 16 percent, as people of color earn an average of $101,505 post-graduation to their white counterparts' $117,834.