> This result should be surprising if we think low tier universities have no signaling power. To me, it's not at all surprising that "got the [equivalent of a]

> This result should be surprising if we think low tier universities have no signaling power. To me, it's not at all surprising that "got the [equivalent of a] degree but didn't have the normal level of interaction with faculty" results in a vastly different outcome. You're assuming that the credential itself is the signal. For regional economies in the US who hire primarily from regional universities, the credential often isn't the primary signal. They'll ask for a reference and actually talk with a faculty member listed. Colleges and especially individual faculty have ties to major regional employers. Those employers understand that output is more variable (in large part because input in more variable). Other employers don't know anything about the institution at all and are likely to bin the app for any role that isn't eg low-pay or pure commission. So the institution maintains relationships with alumni and others making hiring decisions at their "strategic" new grad employers, mostly regional small and medium sized companies. Frank assessments from trusted faculty play an important role in securing first placements. This is particularly true for (low-)paid internships, which are often the primary feeder for new grad positions. If I know that the institution has mixed output and my phone call to the professor listed as a reference is basically "they completed some online modules but we didn't interact much", then I will probably pass.