Why Graduates of the Best Ivy League Schools Earn More

Posted by Kristina Cowan

Coveting entry to the best Ivy League schools is an American tradition. A recent PayScale study adds another reason to chase acceptance: Ivy League grads out-earn their liberal-arts colleagues. According to the study, the median starting salary for Ivy League graduates is 32 percent higher than what liberal arts graduates earn. So why do graduates of the best Ivy League schools make more than graduates of other schools?

One reason could be the connections. New Ivy Leaguers are welcomed into a circle of some of the wealthiest, most powerful and connected people, including very distinguished lists of alumni. An acquaintance of mine who has spent time working at Harvard, Stanford, Yale and Duke recently told me that at Harvard, for example, once you're in, the Harvard circle does everything in its power to make sure you succeed--and keep succeeding throughout life. Others offer different reasons for why graduates of the best Ivy League schools make the big bucks. David Wise, a senior consultant at Hay Group Inc., a global management-consulting firm based in Philadelphia, says "Ivy Leaguers probably position themselves better for job opportunities that provide them with significant upside."

The Best Ivy League Schools Offer the Best Networks

I disagree with Wise. I don't think that, on their own, Ivy Leaguers are better at selecting lucrative jobs than state-school graduates, for example. I do think they are better positioned, however, to gain access to those jobs, and a lot of that has to do with their connections. There's also the issue of status and perception. U.S. corporations view Ivy League graduates as the gold standard, and will pay handsomely for them. Peter Cappelli, a professor of management and director of the Center for Human Resources at the Wharton School of the University of Pennsylvania, says, "Dartmouth kids get paid more for the same job than kids from Rutgers are [doing]."

Part of my reasoning stems from my own experience. When I applied to graduate programs, I picked the two considered best at training journalists, institutions that would give me contacts and access to good jobs. I was accepted at both, and chose the one with, in my mind, a better reputation as far as contacts, networking, and yes, curriculum. In hindsight, it was a bit of a gamble, but my salary did increase significantly. I scored my first job out of graduate school not because of my superior ability at 'positioning' myself. I landed the gig through my connections from graduate school, and was ultimately hired by an alum of my alma mater.

Readers, do you think Ivy Leaguers know how to position themselves better in the job market? Or does their advantage lie more in connections and perceptions of the Ivy League as education's gold standard?

• Ivy Leaguers' Big Edge: Starting Pay (The Wall Street Journal)
• Best Ivy League Schools by Salary Potential (PayScale.com)
• Best Engineering Colleges by Salary Potential (PayScale.com)
• Top Liberal Arts Colleges by Salary Potential (PayScale.com)
• Top Party Colleges by Salary Potential (PayScale.com)
• Top State Universities by Salary Potential (PayScale.com)

 

Comments

[Marcia Robinson @ BullsEye]

This is really good information Kristina!

Of course all of us probably know some "Ivy League Grads" who didn't do well and others from the other than top 10 schools who did, and are doing really well.

Connecting with alumni, regardless of whether you graduated from a top tier schools or not, is really recommended. Your campus career center is really a good place to start making those connections as many alumni come back to campus as part of a recruiting team.

Marcie

[Ashley Malloy]

That topic made me really wander how high class collage's students get better jobs than lower class collages. Even if they work as hard as them or better. I always thought the Havard student got the job because they got into a great collage. Maybe I'm wrong, but who knows.

[Harriet]

Well this is just going to stink of Ivy League elitism...but...please don't think that a Rutgers student would rather choose Rutgers over Harvard. I've always held the belief that colleges do less of a job educating and instead serve more as a "signifier" of a successful person. They just put their label on them and claim them in the future. So yea. If you REALLY think that going to Rutgers is the way to go. Go for it.

[Mardi]

I'm an Ivy grad now living in the upper Midwest. I think there are a number of factors you're not considering. For example, many Ivy grads stay in the Northeast - and there are many more high-paying jobs in the Northeast.

And how did you classify schools like Cornell that have both public and private schools?

[Modman]

That sounds like the complete opposite of the University of colorado. When I went to their career services they looked at me like I was from the moon! "We really don't see any jobs like that!You are on your own" Was the reply when I asked about Biochemistry jobs.

[Joe]

A lot of Wall Street professionals are exiting the Investment Banking career. They know that the lifestyle and the jobs with fat bonuses they had come to expect, albeit with hard work is no longer going to be the same. They will be forced to take jobs with mid-market and boutique banks. These banks will not offer them the heights of anything in terms of bonuses and perks that they were used to at the bulge bracket firms. For those who had been lucky enough to hang on to their jobs or get re-absorbed at JP Morgan & Goldman Sachs will also see much lower bonus amounts and silent attrition. Only the best will probably retain similar status as they had prior to when all this crisis started.

The Ivy League institutions which graduate the brightest and smartest of those seeking a career in Investment Banking are also forced to quickly adapt to the changing circumstances. Their career offices are scrambling to put forth guidance and counseling for those final year students whose offers have suddenly been rescinded and having to face off questions from incumbent graduates of the next year's graduating class.

All ex Wall Street professionals are strongly encouraged to brainstorm career strategies and options at xwallstreeters.com. Feel free to contribute your advice and suggestion for this new future in Investment Banking.

- by Blogger at
xwallstreeters.com