In Tough Times, M.B.A. Applications May Be an Economic Indicator

Click here for the post of Dealbook, blog of The New York Times, October 6, 2008.

Extracts:

HERE’S a pop quiz for the M.B.A. crowd: With the sharp downturn on Wall Street, applications to the nation’s business schools are likely to a) fall, b) hold steady or c) rally like a tech stock in 1999?

It’s not an academic question. Deadlines for first-round applications at many business schools are rapidly approaching. Some admissions officers are already reporting larger-than-normal crowds at events for potential applicants, which could mean that many people are thinking about leaving the Street to take shelter in the quad...

...

During each of the four officially declared recessions since 1980, the number of people taking the Graduate Management Admission Test — a requirement for most business school applications — peaked or was about to peak. Through Sept. 30 of this year, registrations for the test were running about 11.6 percent higher than in the comparable period of 2007, according to the Graduate Management Admission Council, which administers the test.