If Your Boss Has an MBA, You Might End Up Earning Less Money
- U.S. study suggest business degrees hurt other workers’ pay
- Paper says similar trends spotted in Danish companies as well
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U.S. executives with a business degree are more likely to oversee declining pay at the businesses they run, yet tend not to deliver an increase in profits or sales, according to a new paper circulated by the National Bureau of Economic Research.
Wages at companies that hired managers with business qualifications fell by 6% within five years of their appointment, while the labor share of profits dropped 5 percentage points, the paper, by economists Daron Acemoglu, Daniel le Maire and Alex He, showed.