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The effect of ethics on labor market success: Evidence from MBAs

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  • Hussey, Andrew

Abstract

This paper empirically investigates the link between ethics, earnings and gender. Using a self-reported measure from a longitudinal survey of registrants for the Graduate Management Admission Test, we find that ethical character is negatively associated with males’ wages. For females, however, this relationship does not hold. In addition, using measures of the degree to which ethics is emphasized in business school curricula as an indicator for enhancement of individual ethical standards of graduates, we investigate variation in the returns to an MBA degree. We find that the larger the degree to which males report that business education enhanced their ethical character, the lower their wages, holding other aspects of their education constant. For females, however, enhanced ethics through business school is positively and significantly associated with returns to the MBA degree. More objective measures of ethics emphasis in business school curricula provide further support of these findings.

Suggested Citation

  • Hussey, Andrew, 2011. "The effect of ethics on labor market success: Evidence from MBAs," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 168-180.
    • Handle: RePEc:eee:jeborg:v:80:y:2011:i:1:p:168-180
    DOI: 10.1016/j.jebo.2011.03.005
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    Cited by:

    1. Elliott, Caroline & Soo, Kwok Tong, 2013. "The international market for MBA qualifications: The relationship between tuition fees and applications," Economics of Education Review, Elsevier, vol. 34(C), pages 162-174.
    2. Caroline Elliott & Kwok Tong Soo, 2012. "The International Market for MBA Qualifications," Working Papers 24284581, Lancaster University Management School, Economics Department.
    3. Cheng-Wen Lee & Chin Kun Chang, 2021. "Exploring the Assessment Model of Corporate Ethics Influencing Organizational Performance," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 11(2), pages 1-1.
    4. Pruijssers, Jorien Louise & Singer, Gallia & Singer, Zvi & Tsang, Desmond, 2023. "Social influence pressures and the risk preferences of aspiring financial market professionals," Journal of Accounting Education, Elsevier, vol. 62(C).
    5. Megan Way & Yunwei Gai & Lidija Polutnik, 2016. "Compensation and Employment Impact of a Full-time MBA Program," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(1), pages 49-63, February.

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    More about this item

    Keywords

    Gender differences; Business ethics; Returns to education;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • I2 - Health, Education, and Welfare - - Education

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