The relationships between higher education and the world of work are viewed, principally, as similar in economically advanced societies. The comparative study `Higher Education and Graduate Employment in Europe', however, indicates substantial differences between European countries as regards transition to employment, as well as the employment and work situation, according to objective and subjective measures. The analysis is based on a survey of more than 30,000 graduates from 10 European countries about 3–4 years after graduation. The findings suggest that only a minority of 10–20% of graduates face substantial problems on the labour market or end up in positions not commensurate with their level of education. There is a clear North-South differential in Europe with respect to transition and objective employment measures, while the pattern is moredifferentiated with respect to the perceivedutilisation of knowledge, the self-ratedadequacy of position and the job satisfaction.