While a master of business administration degree might help narrow the compensation gap for minorities, it still doesn’t ensure equal pay with white classmates.
Minority M.B.A. graduates make 16% less on average than their white peers, the Wall Street Journal reports, citing a recent study by the Forte Foundation that surveyed 900 men and women who earned their degrees between 2005 and 2017.
The degree does, however, somewhat shrink the gap. Going into M.B.A. programs, white students surveyed earned an average salary of $71,294, while minorities surveyed earned 24% less at $57,640. Upon graduation, that pay gap narrowed to 16%, with minorities earning $101,505 compared to white graduates’ $117,834—or 86 cents on the dollar.
The study found that black, Hispanic and Native American students received a bigger pay increase after school, averaging a 76% salary gain compared to the 65% average salary bump by their white peers. But the gains come out on top of the unequal pay.