I once worked for a magazine that hired only Ivy Leaguers on its editorial side. This extended even to the free-labor interns.
This is true in many elite institutions. Why so much emphasis on the Ivy League in hiring decisions? Here's my theory, in two scenarios:
a. Familiarity - He went to private schools, JK*-12, and on to the Ivy League. He has a background similar to my own. He is like family. In fact, he is my cousin, twice-removed.
b. Validation - I scrambled my way into the Ivy League by sheer merit, through superior skill and keen intellect. I deserve to be in the pantheon of the overclass. If I hire that kid from State U, I am as much as admitting that those public school schlubs I left behind deserve to be here, too.
On the business side of the magazine, where I worked, one's degree didn't matter. It was commerce.
* That's "junior kindergarten." I can't believe you didn't know that. You must have gone to public school.