The Value of a “Brand Name” Degree
http://finance.yahoo.com/news/whats-worth-ivy-league-degree-163337449.html
Does graduating from one of the top 10 ranked universities lead to a higher salary, more prestigious companies, and an altogether better future? Ideally, no, it shouldn’t in the “land of opportunity.” In the area of entrepreneurship, this degree supposedly has no effect. However, while this is ideal, this is not actually the case. While the person who starts a business (for example Mark Zuckerberg and his creation of Facebook) may not have an actual degree, the people that this person works with are likely to be of an equivalent intelligence level as the founder, “smart people recognize smart people” (Sangster). Mark Zuckerberg’s co-founders were his roommates at Harvard. Another example, the entrepreneur who co-founded LinkedIn was a graduate from Stanford University. As he now coaches and mentors, he is more likely to choose a student from Stanford to mentor than a student from any other university, regardless of actual intelligence, just because of the connection a person has to his alma mater. Multiple distinguished companies now utilize a program called MindSumo. The point of this program is to provide multiple challenges in which students participate and complete these challenges to prove that they could potentially be of value to a company. Though this seems as though it would give everyone an equal chance, not all universities are included. While there are several state schools involved, it mainly consists of those esteemed colleges.
For many students, getting into an Ivy League school is the goal that they, as well as their parents, push them towards. Why? Because the “brand name” of these schools is something that has been around for decades and it gives those students who attend, an extra boost into a high salary job. While this is something that contradicts the idea of the “American dream”, a place where everyone has equal opportunity, the idea itself of entrepreneurship is one that completely encompasses it. However, those people who start their own business are more likely to use the reputation of these brand name schools as well as the connections that branch from them to choose their future employees. As the article states, ” it isn’t so much the classes that students take, but rather the network of people that surround them and the doors that are opened because of a college’s reputation.” This relates to chapter 22, where cars that have the insurance sell better. In that example, the cars with the insurance are sold at a higher price (sold at the buyer’s price for a good car) because the insurance is a certificate of good quality and the buyer knows that he is getting a good product. A similar theme can be seen in the obtaining of a degree from a prestigious college. These universities have a good reputation that is well known throughout so the employers are more tempted to choose a student with a “special degree” rather than a state school degree. It comforts the employer to know that he is hiring someone with something similar to a “certificate of good quality.” Also, these good colleges are given more of an advantage because of the general concept of networks. The people who are creating these new technologies usually come from “top tier” schools. They will usually have a good image of their alma mater and therefore creating a positive tie. So anyone who hails from the same school will be given an advantage because of the connection that is made. Hence why LinkedIn’s Konstantin Guericke is more likely to coach a student from Stanford. So, does a top tier university degree help a student for the future? Though many people who try to insist that connections and degrees don’t matter, they do. They provide more incentive and reason for employers to look at their applications more and to hire them in the end.
-Echun11