Abstract
This article uses data from a major international survey to construct earnings functions in terms of learning outcomes and variables related to working life in different European countries. In order to complement the extended earnings regression model, the authors have used partial correlation analysis and the analysis of covariance (ANCOVA) to discover the relevant competences appreciated by employers. Whilst one of the authors' focus countries is Finland, research results from comparison European Union countries with similar education systems have also been analysed. Consistent with previous research, the study outlines the correlation between the competences taught in universities and performance in working life, and thus quantifies the effect of higher education on earnings. In line with the theory of human capital, those who have invested more in higher education also seem to achieve higher return from the job market. However, the analysis also shows how a few of the competences taught in universities correlate negatively with the demands of working life in contrast with initial expectations. Consequently, this research offers new insights with regard to existing literature on higher education and earnings functions. The authors also open up new research avenues within the theory of human capital.