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For every one UMich or UIUC grad, there are maybe 100 in-state graduates and we know it.
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That's because they're there, and they're plentiful, and they're used to cost-of-living being what it is in California. All the firms I worked with would *love* to bring in people from the top schools east of California, but once they hit salary offers and their prospects start looking at real estate and leasing prices, the offers hit the skids and the candidates decline the offers. It was a huge problem at my old firm.
It's not that the companies don't want out-of-state people, it's that the out-of-state people can't fathom paying 2K/month for a two bedroom apartment.