So you’ve finished your undergraduate degree – congratulations! – and now you’re trying to decide whether to pursue a Master’s of Business Administration (MBA) or go to law school and earn your Juris Doctor (JD) degree. Both are highly respected credentials that often lead to lucrative jobs. But is an MBA or law school better for you?
Here are some important facts about business school, law school and the careers they lead to, as well as some tips on choosing between them.
Admission Requirements
MBA: Most business schools expect you to have a bachelor’s degree in a business or business-related field (such as accounting, finance or management). However, some will accept applicants who hold degrees in other disciplines, especially if you have work experience or test scores that demonstrate preparedness. And speaking of test scores, most MBA programs require you to take the Graduate Management Admission Test (GMAT). The average score is currently 540. A 620 or higher is considered a “good” score and can significantly broaden your admission prospects.
Law School: Law schools also expect you to hold a bachelor’s degree, but almost any discipline is acceptable. Pre-law and political science are the most common, but English and liberal arts are also considered good preparation. All law programs approved by the American Bar Association (ABA) require you to take the Law School Admissions Test (LSAT). A score of 150 is considered average, though a 160 or higher is typically required to secure admission to top law schools. And remember that after graduation you must pass the Bar Exam before you can practice law.
Some Tips: If you’re good at math and have a business-related undergraduate degree, an MBA may well be for you. On the other hand, if you’re a good communicator and have a broad liberal arts education, law school is probably a better choice. You can always take both the GMAT and LSAT, then let your scores help you decide which field you’re more prepared for.
Job Prospects
MBA: Earning your MBA prepares you for management and executive positions in the business world. There are a wide variety of specialties to choose from, but the most popular are general business, management and finance.
The U.S. Bureau of Labor Statistics (BLS) estimates that the field of advertising, marketing, promotions, public relations and sales managers – which employs a large number of MBA graduates – will see 13% growth through 2018. For top executive positions, often the ultimate employment goal of many MBA holders, BLS data indicates little overall change. However, the number of such jobs in certain rapidly expanding fields (such as health services) is expected to grow significantly.
Law School: Completing your JD degree and passing the Bar Exam qualifies you to practice law. The BLS estimates that demand for lawyers will increase by 13% through 2018, with some concentrations – such as environmental law and tax law – growing faster than others. BLS data also indicates that about 26% of lawyers are self-employed, though starting a new law practice can be difficult in large cities where established firms hold sway. If you do want to start your own practice, small towns and expanding suburban areas may offer you the best opportunities.
Some tips: Job growth is about even in both management and law. Healthcare administration is going to offer the most opportunity for MBA holders, so if that field interests you then business school is probably a better choice. Lawyers will have better prospects if they specialize in environmental or tax law, so enthusiasm in either area can mean that law school is for you.
Top Careers
MBA: The BLS estimates that in 2008, the median annual wages were $80,220 for advertising and promotions managers, $108,580 for marketing managers, $97,260 for sales managers, and $89,430 for public relations managers. The average for chief executives was $158,560, though top-end executive salaries can rise into the millions of dollars. When the overall jobless rate was 8.2% in 2010, it was only 4% for professionals who held a master’s degree.
Law School: The BLS estimates that the median annual wages for lawyers were $110,590 in 2008. The highest-paid lawyers worked for corporations ($145,770 average salary) or the federal government ($126,080 annual salary). When the overall jobless rate was 8.2% in 2010, it was only 2.4% for those with a professional doctorate.
Some tips: Both degrees give you an excellent opportunity to obtain a secure, well-paying career. That said, an MBA offers you a higher potential top-end salary, but a lower average salary and slightly more risk of unemployment. Conversely, a JD provides a higher average salary and an exceptionally low jobless rate, but less potential for truly astronomical earnings. So an MBA (including online MBA programs) is probably more desirable if you want to climb to the very top of the income ladder, while law school would be better if comfortable, affluent stability is your goal.