↓ Skip to main content

“This paper provides evidence from the US and Denmark that managers with a business degree ("business managers") reduce their employees’ wages.”

Daron Acemoglu, Alex He, and Daniel le Mairenber.org ↗

Within five years of hiring a manager with a business degree, US wages fall 6% and the labor share drops 5 points. Output, investment and employment don’t go up. The MBA doesn’t grow the pie. It just cuts the workers’ slice and hands it to the shareholders.