Currently dominant human capital and knowledge economy rhetoric holds that education can raise wages, empower workers and enhance working conditions. Education, however, can also have the opposite impact in the workplace and labour market, an impact that has received only limited attention. In this article we draw together a broad range of literature focusing on youth and entry-level employment in order to analyse the different frames of status, process and promise in which education serves not as a "premium" but as a "penalty", used to diminish worker power and claims to good conditions of employment in the present.