By Simon J. Lau, CFA
Updated June 2024
Why Cheating Your Way into College Is Pointless
In light of the Operation Varsity Blues scandal that has engulfed the national college admissions scene, I felt it worthwhile to discuss why schemes like these are so misguided. Does a degree matter? Yes. Does a degree from an elite institution matter? Not so much. No successful person has ever been defined solely by where they graduated. In fact, we can point to examples of people who peaked during college admissions only to falter later on. Below are three reasons why cheating your way into college is a pointless exercise.
The Number and Proportion of Quality Students in America Are Increasing and More Widely Distributed
Two key factors in manufacturing include the quality of the inputs and the quality of the process. This philosophy can be applied to colleges and college admissions. The quality of the inputs refers to the incoming students, while the quality of the process refers to the education provided. Research has demonstrated that “students who attended more selective colleges do not earn more than other students who were accepted and rejected by comparable schools.” In other words, if you were accepted by UPenn but attended Penn State, you’d likely end up on a similar path. Even if you went to a less prestigious university, you’d retain your intellect, motivation, and other important qualities.
College typically occupies about four years of a person’s life, whereas learning occurs across a lifetime. The higher the quality of the individual, in terms of intellect, emotional intelligence, and life experiences, the better the outcomes. College plays a relatively small role in a person’s lifetime learning. Drawing from my own experiences, college, especially business school, significantly impacted my understanding of finance and strategy and piqued my interest in topics like corporate governance. However, it was the ongoing learning I did after college, from academic literature, business journals, and applying theories in practice, that has kept my skills relevant and made me more effective at leading teams. This research, combined with my observations, suggests that the quality of the students (inputs) plays a larger role than the quality of the education (process) on the outcomes.
From 1990 to 2016, the US population increased from 249 million to 323 million, a 30% increase. This growth rate nearly matches the growth in the number of 17-year-olds applying to colleges during the same period. However, colleges such as Harvard increased their enrollment by only 51 students, an 8% increase. This trend is not isolated to Harvard; other Ivy League colleges such as Yale, Princeton, UPenn, Dartmouth, and Columbia grew by only 8% in that timeframe. Assuming the proportion of talent remains the same, there are more students who would have been admitted to elite colleges in 1990 but not in 2016. This does not consider the global talent America has attracted since 1990, further increasing the number and proportion of talented young Americans.
Where does all this talent, which could have attended Ivy League schools in the past, go? Many attend top public universities such as UC Berkeley, the University of Michigan, and the University of Texas at Austin. Others attend large state universities like Penn State, Michigan State, and Ohio State, or regional colleges. As more talented students are turned away from elite colleges, these students fill the ranks of other universities. This means one does not need to recruit at an Ivy League to find Ivy League-quality students; instead, there is a growing pipeline of such students at many non-Ivy League colleges across America.
Most Industries Value Actual Skills and Capabilities Over Pedigree
There are three classifications of goods and services: Search, Experience, and Credence. Search goods and services can be evaluated for quality before purchase (e.g., produce, clothing, cars). Experience goods and services can only be evaluated for quality after consumption (e.g., travel, hair stylists, technology products). Credence goods and services are difficult to evaluate even after consumption (e.g., investment banking, consulting, legal services).
In most industries, a college pedigree has little to no direct influence on pricing. For example, would you pay more for a Toyota 4Runner if you discovered the Product Manager graduated from MIT? Likely not. Similarly, would you pay more for an iPhone if the iOS developer graduated from Caltech? Not at all. In these cases, the actual skills required to build a better product create a higher-priced product and allow skilled labor to command a higher wage. A pedigree without real skills is worthless, but real skills without a pedigree are highly valued. Pedigree matters in industries where Credence services are sold, as there are no reliable tools to assess the final output. In these narrow segments, where one went to school may be considered.
However, for every consultant, investment banker, or lawyer where pedigree matters, there are hundreds if not thousands of jobs where an elite college degree does not directly improve price or pay. In these other industries, functional skills, management skills, and interpersonal skills play a much larger role in a company’s success and an individual’s career. These skills are sharpened, expanded, and improved over a career, far beyond the influence of where one went to college.
Doing Well in School Is Not Directly Correlated with Workplace Success
I dislike when people say life is about choices. It’s not. Life is about trade-offs. Choices give the false impression that life is a buffet where you can have as much or as little as you want. At best, life is a single-plate buffet. You’re often presented with the same option once, and with a limited view of what may or may not remain, you’re forced to decide quickly. You may try something new and love it, but often discover that you don’t. You may gorge yourself on one thing you like, only to discover later that you missed out on something delightful. You may be distracted by one dish’s appearance, only to realize that what you needed was something more substantial. Life is about trading one thing for another, not choosing it all. Those most successful in life, and by extension in work, possess a great deal of self-awareness, grit, and can capitalize on luck. Unfortunately, these factors are not well understood and cannot be easily harnessed. Schools provide valuable tools necessary for success (e.g., reading, math, writing), but none of these factors alone are sufficient for success. Higher education institutions create artificial hierarchies that create false distinctions between tiers of universities.
Do all Ivy League graduates perform better than other graduates? No. Do all top public school graduates perform better than state school graduates? No. After some time in the workplace, one realizes that the most effective leaders and best teammates are not necessarily from the best schools but are those who have learned to balance the trade-offs necessary to be successful in work and life. These skills are not taught in school.
All things considered, the US economy has great demand for highly skilled labor from a wide spectrum of colleges and universities. Rather than concern yourself with a particular school, focus on learning valuable technical skills, gaining relevant work experience, and moving to regions of explosive job growth. This approach will create a more durable career, meaningful impact on organizations, and provide a lifetime of satisfaction that cannot be achieved by cheating your way into college.
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