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In this chapter the authors examine what status educational credentials have as an allocation criterion in present day Sweden. This is discussed with reference to the allocation agencies and their relationships to the educational system and with reference to features of the educational system itself, since the institutional links between the educational system and the labour market are of great importance. The chapter then looks at the way in which the association between level of education and labour market outcomes is structured by other factors such as social origin, gender, type of education and labour market characteristics. Assumptions about such structuring effects are presented and tested on recent data for young Swedes. A discussion of the main results and findings closes the chapter.