A large literature in both sociology and political science has theorized about the importance of skill formation systems for labor market outcomes, macroeconomic performance, and inequality. However, consensus on how countries fit into skill formation groupings has been difficult aside from agreement about differences between exemplar countries. Empirical evidence that these groupings are real and have real effects has been elusive. Focusing on labor market outcomes across twenty-one European countries, this paper establishes that countries indeed differ in the strength of the pathways that connect educational credentials to the occupational structure, and that pathway strength matters for the quality of occupational matching and for labor market outcomes. Stronger linkage is generally associated with higher relative earnings and greater chances of employment, though heterogeneity exists both across age and gender groupings and across educational levels. Country-level structure matters in part because it is related to the local linkage strength of pathways, even as there is considerable heterogeneity within countries in the coherence of pathways from educational outcomes to occupations. The strongest evidence for macro-structural effects concerns the impact of macro-structure on the earnings gap between well-matched and less-well-matched workers with non-tertiary and with upper-tertiary education. The findings suggest that policies to improve labor market outcomes do not require wholesale transformations of a country's skill formation system, but instead can focus on improving pathway coherence one pathway at a time.