One option an unemployed American may pursue is to return to school for more education, and perhaps receive a Master’s of Business Administration degree.

However, that career trajectory may not be as fiscally rewarding as it once was.  The market for those with MBA’s is a “mixed bag at best“, and a new Wall Street Journal report by Ruth Simon indicates that smaller paychecks await those who do actually managed to get hired.

Like many students, Steve Vonderweidt hoped that a master’s degree in business administration would open doors to a new job with a higher paycheck.

But now, about eight months after receiving his M.B.A. from the University of Louisville, Mr. Vonderweidt, 36 years old, hasn’t been able to find a job in the private sector, and continues to work as an administrator at a social-service agency that helps Louisville residents obtain food stamps, health care and other assistance. He is saddled with about $75,000 in student-loan debt—much of it from graduate school.

“It was a really great program,” says Mr. Vonderweidt. “But the job part has been atrocious.”

Soaring tuition costs, a weak labor market and a glut of recent graduates such as Mr. Vonderweidt are upending the notion that professional degrees like M.B.A.s are a sure ticket to financial success.
The M.B.A.’s lot is partly reflected in starting pay. While available figures vary by schools and employers, recruiters’ expected median salary for newly hired M.B.A.s was essentially flat between 2008 and 2011, not adjusting for inflation, according to a survey by the Graduate Management Admission Council.

The M.B.A.’s lot is partly reflected in starting pay. While available figures vary by schools and employers, recruiters’ expected median salary for newly hired M.B.A.s was essentially flat between 2008 and 2011, not adjusting for inflation, according to a survey by the Graduate Management Admission Council.

For graduates with minimal experience—three years or less—median pay was $53,900 in 2012, down 4.6% from 2007-08, according to an analysis conducted for The Wall Street Journal by PayScale.com. Pay fell at 62% of the 186 schools examined.

Even for more seasoned grads the trend is similar, says Katie Bardaro, lead economist for PayScale.com. “In general, it seems that M.B.A. pay is either stagnant or falling,” she says.

The pressures are greatest for those attending less prestigious schools, says Stanford Business School professor Paul Oyer, who studies personnel trends. But even at top programs, some graduates are likely to struggle in today’s environment, he says.

Another burdensome issue: a high debt load. Nearly 60% of graduating M.B.A.s said they expected to repay some loans after graduation, according to a 2012 GMAC survey.