
The views expressed are those of the author and do not represent the views of the SNF Agora Institute or Johns Hopkins University.
Authors: Amy Binder, Ryan Cieslikowski
Private elite colleges and universities, those with large endowments and highly selective admissions, are engaged in a historic contract with the public. They are expected to prioritize the public good in exchange for tax exemptions and organizational autonomy. Their mission statements reflect this obligation: Princeton pledges to “serve the nation and the world,” Stanford aims to “promote the welfare of people everywhere,” Yale educates “aspiring leaders worldwide who serve all sectors of society,” and Harvard commits to “educate citizen leaders.”
However, research suggests these institutions are not fulfilling their stated missions. A process called “career funneling,” through which roughly half of all work-bound Ivy-Plus graduates are channeled into just three corporate sectors – finance, consulting, and tech (FCT) – represents a deviation from elite universities’ obligations to the public. Instead of creating pathways for students to become future leaders across essential fields, these universities disproportionately steer graduates into high-paying private sector roles that many students regard as “selling out.”
The consequences extend beyond individual career choices to the health of our democracy. As elite graduates cluster in high-paying sectors and the handful of cities where these jobs are located, the country’s leadership class grows increasingly distant from the diverse communities universities are meant to serve. This professional and geographical segregation undermines universities’ obligation to develop broadly representative leadership and fuels public skepticism about whether elite institutions serve society’s needs.
In this white paper, we document how career funneling occurs on elite campuses and examine its broader implications for democratic society. Beyond that, we offer 18 recommendations that university leaders, staff, faculty, alumni, and external partners can use to create more balanced pathways for future graduates.