Could being rejected by an Ivy League school be a good thing in the long run?

A recent article in Time magazine argues that despite the initial sting, being rejected by an elite school could actually be more beneficial than getting accepted.
Economists Alan Kruger and Stacy Dale released a study last month finding that students who were rejected by Ivy League schools make the same amount of money as those who graduate from prestigious institutions. Kruger told the New York Times, “Even applying to a school, even if you get rejected, says a lot about you.”
The study suggests SAT scores are better indicators for long term success and students who are confident and ambitious enough to apply to highly selective schools but graduate from a less preferred institution will not be economically penalized in the future.
They also found high achieving students who go to less preferred schools are at the top of their undergraduate class often giving them an advantage for graduate school admission.
Add to this, a recent study by public opinion pollster Rasmussen Reports stating only three percent of employers think graduates of Ivy League schools are better workers.
Is getting a rejection letter from Harvard so bad after all?