This obsession with "identity" (and its counterpart in the Bay Area, "prestige") is so utterly bizarre to me. I was fortunate to end up in relatively well-paying jobs at well-known tech companies, but I told my partner if someone offered me $900k per year to scrub toilets (with good work life balance and job stability), I'd happily switch to doing that instead.
I do feel like this identity-based perspective has some strong cultural influences. Certain regions of the world or U.S. seem to care a lot more about peer-perception than others. I grew up in an area of the U.S. that might be considered "working class oriented" and no one cared about credentials. The first thought after getting laid off or fired certainly would not be "what does this say about me?"