Competing assumptions about whether entering the labour market via fixed-term jobs is a good or bad start into work life persist in the literature. Based on the longitudinal survey TREE, this article sheds light on (1) who enters the Swiss labour market via fixed-term jobs after graduating from initial vocational education and on (2) the consequences regarding their future returns. Results indicate that vocational education graduates entering the work force via fixed-term jobs of low occupational status must expect lower future wages.