This effort compares the graduates of the three types of Registered Nurse (RN) education programs (three-year Diploma in Nursing, two-year Associate Degree in Nursing (ADN), and four-year Bachelor of Science Degree in Nursing). The basic objective is to determine whether they are perfect substitutes, especially whether ADN graduates can adequately replace diploma graduates as the base of the profession. The measurement of the performance of the RNs is indirect. The job market outcomes for RNs of different educational backgrounds reveal the implicit evaluations by employers of RNs. Regressions of the probability of employment in various nursing jobs as a function of RN education, work experience, and various personal characteristics are used for this analysis. The RN wage structure is also examined to determine whether there is consistent wage differentiation between the various RN preparations. The data were developed through a mail survey of a random sample of California resident RNs. A response rate of about 80 percent was obtained with three mailings, yielding 942 employed RNs for the analysis. Conclusions are that ADN graduate and diploma graduate RNs are indistinguishable; they are paid the same wage, and their job distribution is the same when work experience is controlled. However, diploma graduate RNs cannot substitute for BSN graduate RNs. They are paid similar wages when job area is controlled, but their distribution among job areas is markedly different. (Author)