American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
The Great Recession and the Widening Income Gap between Alumni of Elite and Less Selective Universities
American Economic Journal: Economic Policy
vol. 17,
no. 1, February 2025
(pp. 216–41)
Abstract
Using mobility report card data, 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.Citation
Weinstein, Russell. 2025. "The Great Recession and the Widening Income Gap between Alumni of Elite and Less Selective Universities." American Economic Journal: Economic Policy 17 (1): 216–41. DOI: 10.1257/pol.20220174Additional Materials
JEL Classification
- D31 Personal Income, Wealth, and Their Distributions
- E32 Business Fluctuations; Cycles
- I23 Higher Education; Research Institutions
- I28 Education: Government Policy
- J31 Wage Level and Structure; Wage Differentials