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The Great Recession and the Widening Income Gap Between Alumni of Elite and Less Selective Universities
The Great Recession and the Widening Income Gap Between Alumni of Elite and Less Selective Universities
Russell Weinstein
American Economic Journal: Economic Policy (Forthcoming)
Abstract
Using mobility report card data (Chetty et al., 2020a), I show the income gap
between alumni of elite and less selective universities widened for cohorts graduating
during the Great Recession. This is evident for mean and median incomes, and access
to high earning percentiles. Results do not appear driven by differences in student
composition, including parental income. Using a unique dataset of recruiting strategies
for prestigious firms, I highlight one channel through which university selectivity may
have a causal impact: high-wage firms concentrated their recruiting at elite universities
during the recession. The results are informative for policies increasing lower-income
students’ representation at selective universities.
