jtnet,
This may be true for many employers, but the real biggies do care, or, at least, they used to. For example, I worked for AT&T for 18 years and we had a strictly controlled list of preferred schools to recruit new hires from. Other similar firms, eg, IBM, HP, Merril Lynch, etc had the same approach. I understand that the big Investment Banking companies (that would hire a PhD in Economics) are very picky about schools and would pay a lot more for someone from an Ivy League institution, eg, Columbia, than for someone from, say, Rutgers U.