<p>The Dale and Krueger draft study link posted stated that there was an increase in earnings from going to an elite college. However, they also stated that the >20% rate of return was for students going to college in the late 1970s and with the increase in college tuition, the rate of return would return to “more normal levels”. The study does not seem to draw any definitive conclusion on the actual earnings value of attending an elite school vs a state school for the matched population. They find average SAT score MAY be too coarse, but don’t definitively dismiss this and do not offer another way to evaluate whether it is the instituion or the student’s ability that is more important factor in future earnings.</p>
<p>The data do not appear to be available to determine the impact of undergraduate institution on success or even earnings. Many other factors come into play. Many students at elite colleges have huge advantages over state school students in terms of parental money and connections that lead them to internships and jobs. Many of these students can take unpaid internships or research jobs in the summer while their less fortunate counterparts need a paying job, regardless of their college of attendance.</p>
<p>I don’t understand how dividing the number of PhD degrees awarded by the number of undergraduate degrees is a measure of anything meaningful. It may simply mean that the school with the lower ratio has more undergraduates, not that it is less efficient. A better measure of quality would be the percent of students finishing the PhD and their job outcomes. </p>
<p>Most undergraduates do not go on to obtain PhD degrees. For many students, free tuition and financial support are available for PhD programs but not for masters or professional degrees. Many students may go on to earn a Master’s degree in fields like education, social work, planning, international relations, or even science. Most of these are self-pay and having huge debt from undergraduate school can greatly limit a student’s ability to pay for such a degree.</p>
<p>For certain highly motivated students looking to work in finance or other fields in which connections are important, going to the elite may be worth the financial sacrifice. For many others, looking at other fields, the cost may be too high.</p>
<p>Certainly, for those very few students that can choose between an elite private and an uber-selective scholarship program at a State U, the advantages of the latter are many - particularly for those planning on further studies. The Grad School institution is more important in most fields than the undergrad school. I thank the OP for taking the time to post here.</p>