This study examines the influence of investments in education on the nature of activities performed on the job. Specifically, attention is focused on whether registered nurses (RNs) with a baccalaureate degree differ from graduates of other programs entailing less schooling in the frequency with which they perform various nursing functions. Results of an ordered probit model using data from the 1986 Biennial Survey of Illinois RNs show that baccalaureate nurses perform high skill functions more often, indicating that education does influence the nature of work activities. Combined with the finding in previous studies that baccalaureate nurses earn significantly higher wages, these results suggest that the labor market differentiates among nurses by education, raising questions about the need to change current licensure laws on informational grounds.