An alternative explanation is that additional schooling could compensate for low workplace skills. While those who attend full-time MBA programs outside of the top-25 have higher test scores and higher grades than those who take the GMAT but do not attend, they may be weaker on other traits which are not easily observable but also important for labor market success. For example, obtaining an MBA may provide one with job contacts—something those who do not choose to obtain an MBA may already have. In fact, we are able to show that those who do not obtain an MBA are actually stronger in areas not generally measured.
