This research is concerned with the high drop out rate from Icelandic secondary schools (half of all Icelandic students do not complete a degree) and attempts to analyse the relationship between schooling and early career jobs through focusing on the differing work experiences of dropouts as compared to graduates. The main focus of the study was to what extent diplomas and degrees count in hiring decisions and job rewards. The author goes on to discuss the economics of education and future directions in educational programs, with an emphasis on occupationally-oriented 'vocational' training.