Stacy Berg Dale and Alan Krueger looked into this years ago. Has anything changed much since then?
I know someone who went to a Midwestern state school, majored in Spanish and ended up in international investment at a bank headquartered in the Midwest. I think all businesses look in their backyard for candidates because the retention rates are higher when new hires have multiple ties to the region. If elite firms are on the east coast they will be inclined to hire the best graduates on the east coast. Startups on the west coast are going to recruit from their region as well.