yes..according to me degrees do matter a lot. If a engineering grad is from reputed colleges like IITs/BITS or a management student is from IIMs/ISB he certainly stands a much better change than other college students. The thing however to note here is that these students generally DO have more experience in their fields..For example a engg grad from IITs/BITS would certainly have spent atleast 3 months in case of an IIT and 7 1/2 months in case of BITS in the industry. It is the value added coz of the college too which matters and reflects in the degree.