Definitely an underappreciated part of having a prestigious degree(s). I've written about it elsewhere with regards to having no degree vs having one, but it applies to MS vs BS and standard state school vs top-tier just as well.

It's another form of social proof, and it affects not just whether or not you get hired, but how people view you, speak to you, and whether / how much they listen to or consider your opinion. Of course, many people don't give degrees a second thought, but for every one of those, there are plenty who do.

Did you work a year full time in a relevant field before you did your masters?

I am saying I would rather employee someone who had worked for a year in my field than someone who had done a Masters straight after their Bachelors.