Young women in advanced industrial countries have been outperforming young men in educational attainment at the same time that their labor market outcomes are still lagging. Sex segregation in education and the labor market is identified as an important source of this imbalance. In this article, the authors advance some thoughts about this persistent gender inequality in labor market returns to educational investments, with a special emphasis on Switzerland. They argue that sex segregation in vocational training, fields of study, and the concomitant occupational sex segregation in the Swiss labor market account decisively for the prevailing inequalities. To underscore their argument, the authors provide three pieces of evidence. The first one discusses why young women in Switzerland are overwhelmingly channeled into female-typed vocational training. The second focuses on the implications of female-typed fields of study for labor market returns. The third piece of evidence shows that womens occupational allocation in the Swiss labor market over the past thirty years has been concentrated in a relatively small number of occupations that have become female typed because of the great influx of women. (Contains 1 figure and 22 notes.)