This paper studies the extent of graduate overeducation and graduate gender income differences in Australia. As well, the paper tests for non-linear returns to overeducation. It is found that the rates of graduate overeducation vary by both gender and time and range between 16% - 22%. Returns to graduate overeducation increased over the time period but were consistent with the stylised facts found in the literature. Non-linear returns to overeducation is weakly evident for female graduates in 1996. The graduate gender income gap narrowed by 5.6% between 1991-1996, mainly due to the improvement of the position of female graduates within the male graduate income distribution and improvements in their human capital characteristic endowments relative to male graduates
