Competencies for young European higher education graduates: labor market mismatches and their payoffs

Abstract Labor market rewards based on competencies are analyzed using a sample of young European higher education (HE) graduates. Estimates of monetary rewards are obtained from conventional earnings regressions, while estimates total rewards are based on job satisfaction and derived through ordered probit regressions. Results for income show that jobs with higher participative and methodological competency requirements are better paid. The results also show that higher requirements in terms of competencies increase graduates? job satisfaction.