The rewards of human capital competences for young European higher education graduates

European Labour Market of Higher Education Graduates: Analysis of the CHEERS Project. 17-18 Junio 2005
This paper analyses the relationship between the payoffs of the required, surplus and deficit human capital competences in terms of both graduates? income (monetary payoff) and job satisfaction (non-monetary payoff). Surpluses and deficits in competences were measured asking graduates to evaluate the job they held in terms of the level of competences they thought was required to perform adequately compared to their own acquired level. The results provide strong support for the assumption that the match between individual human capital competences and the characteristics of the job matters. It could be said that the level of competences required in a job does not only state the total amount of graduates? earnings. Because we analyse jobs occupied for recent graduates, salaries are more related to the job itself than to the real performance of individuals. The results relating to job satisfaction shed light on the statement that working in a job that required a high level of competences has a positive effect on the job occupant?s satisfaction, but surpluses in competences are an important cause of job dissatisfaction, while the effects of deficits are ambiguous depending of the individual challenge.
Segovia, España