Wesley Clark, I disagree with your analysis. First, as several have noted, it’s a rather extreme dichotomy that you describe. The other aspect depends on the intent of the graduate. Both of your students go on to graduate school. It’s a cert the C+ student would be wise not to mention his/her GPA when interviewing, as graduate work is generally expected to be B+ or better work.
Let’s discuss this in terms of economic returns to higher education. Again, if the goal is to get a great job immediately after college, I’m of the opinion that your Harvard grad is going to come up a winner primarily because of his/her better performance in school (a productivity argument - student appears to have learned more) and to a lesser extent, because of the fact that he/she attended Harvard (a signalling argument - school appears to be “better” than the others). This would be mitigated by a strong performance in undergrad from your state school student, as Harvard/Caltech types are relatively rare and most employers likely feel that a comprehensive state institution is plenty prestigious - especially if they went there, or they have a particularly strong football team…
There have been quite a few studies on this - I’ll cite Hoxby (1998), Hoxby and Long (1999), and Dale and Krueger (1999) (Note I don’t know the names of these studies; I took a class on economics and higher education and they’re in my lecture notes). The general rule is this: given the option of attending a highly selective institution (think Caltech) and a significantly less selective one (think Mantako State), over a lifetime the Caltech student will earn more. However, as I said, a strong performance at any institution would likely serve both students quite well.
Dale and Krueger point out that among the highly selective schools - let’s compare a Yale with a Bard College - there is something called the “Spielberg effect” - students will do as well at Bard as they would do at Yale. However, students who are from lower socioeconomic strata and first-generation students do benefit from the Yale brand, probably because they have less access to networks from their family, neighborhood, etc.
At my institution we have huge master’s cohorts, and significantly smaller doctoral cohorts. For students here, the signal of attending a highly selective graduate school will likely assist them greatly in the job search - though there is the “backlash” factor, where some interviewers expect the candidate to know all there is to know about a topic because they attended Fancy University (yes, I’ve been on the receiving end). But that is by no means the predominant experience. What I tell students - and I think this is where I find some agreement with you, Wesley Clark, is that it is probably more important to make some solid connections with classmates, alumni, and faculty than it is to make all A’s and do little networking. If in your hypothetical, the state college student wants to work in real estate, and he’s networking with people in the field, and friends and family in the field, he/she is doing a good job with the networking but it isn’t going to compensate for a miserable academic record.
The fact is, alumni and peers are often in positions to hire and appoint positions, and in a one-year master’s program, it’s assumed if you graduated, you did well. It would be far more impressive to walk into an interview with a glowing letter of rec from a prof than to walk in with a perfect GPA and generic “well, this guy made an A in my class” letter.
bizzwire, I think the signal that a Ph.D. gives is that the person is capable of conceptualizing and executing a complex project from soup-to-nuts. A Ph.D. is also a signal of a strong analytical bent, but of course these things all have their place - not much logic in spending months figuring out a solution that should be done rather quickly. I’d think that if those qualities aren’t important in those jobs, Ph.D.s are a poor fit for those positions. But I know doctoral students here that can organize like you wouldn’t believe and are ruthlessly efficient… a Ph.D. is not going to transform your work style, you’ll just earn the degree in the way you work already.
oh, and Manda JO? That’s an incredibly terse, yet accurate description of academia!