This report is an extended version of a paper presented at the 11th Transition in Youth (TIY) Conference in Funchal, Madeira 4.-6. September 2003 (“Competences and Careers”). The objective of the report is to analyse the connection between the allocation of resources in higher education and the subsequent effects on graduates’ labour market outcome. The analyses are based on data from different sources matched for the first time. Graduate level data are derived from The NIFU Graduate Survey 2000 while the faculty level data are either from registers or from NIFU University Survey 2000