Comparing Germany, France and the United Kingdom the presentation investigates the institutional structure of the tertiary system of education and the returns to various forms of tertiary education on the labour market. It also shows how the institutional arrangements of tertiary education and their returns have changed in the course of the expansion of tertiary education participation. The three countries differ considerably in the extent to which tertiary qualifications affect access into advantageous class positions. The French system with its series of successive cycles and strong hierarchical organisation structures most clearly access to service class positions. The UK system has the lowest signalling capacity of the three countries. Germany holds an intermediate position between France and UK. Factors responsible for these differences are discussed. In the course of expansion of tertiary education, in all countries educational expansion did lead to a slight decline in absolute returns by way of limited displacement. Returns to highest qualifications have been affected the least. Relative returns, however, remained highly constant over time. Only in Germany class prospects of graduates from the Fachhochschule are increasingly similar to those of university graduates.