A study was done to learn about relative job satisfaction among nurses with baccalaureate degrees compared to nurses with associate nursing degrees. A job satisfaction survey was mailed in the summer of 1988 to a selected sample of 480 nursing graduates of a regional southeastern university. Seventy-two baccalaureate and 50 associate degree nurses responded. Each group had average work experience of about 8 years. Baccalaureate nurses gave significantly higher satisfaction ratings for 8 of the 20 job aspects studied, including job security, fringe benefits, hours that fit with lifestyle, interaction with supervisor, respect among ranks, status, self-esteem from job, and help and supplies. When these respondents were subdivided into smaller groups based on work setting, job responsibility, hours worked, work experience, and graduation year, the higher satisfaction ratings of baccalaureate nurses persisted. The results also showed work-related differences between groups: a much higher proportion of the associates group was working in hospitals, 84 percent compared with 66 percent. More of the baccalaureate nurses were not primarily responsible for direct patient care, 40 percent versus 22 percent. On average, baccalaureate nurses working full-time earned about $4,000 more than associates. The findings of higher salaries and greater job satisfaction for the baccalaureate group supports the economic concept of investment in human capital. Contains 19 references. (JB)