The link between higher education and labour market success is difficult to examine not only because the boundaries between higher education and the world of work are blurred, with many students already working while studying or starting new higher education studies at an older age with work experience, but also because employability and a good labour market position are influenced by a number of other factors beyond the existence of a higher education degree. The concept of labour market success itself is not straightforward, as there are many dimensions, some of which can only be captured by subjective indicators. (Teichler, 2002; Veroszta, 2011).

In recent decades, there has been a growing demand in some European countries for closer links between higher education and the employment system. However, in most countries, the focus is on the development of so-called "key competences", i.e. competences that are not closely linked to specialized professional training. (Teichler, 2018). Analysing graduate skills can lead to a better understanding regarding labour market demand and supply, as well as competencies that need to be taught in higher education institutions. While exploring these skills and competencies, it is important to bear in mind other important factors involved in the process - age, social background, type of university, field of study, etc. (Mason et al., 2009). However, it is also worth mentioning that many relevant employability skills can be best acquired in the workplace rather than in universities given the specific nature of the tasks performed in the workplace. (James et al., 2013).

Previous international research (REFLEX, HEGESCO) have shown that graduates, assessing their own competencies and those they believe the labour market expects of them, often report shortages in some areas and surpluses in others, but both can occur simultaneously for some competencies, if graduates are not well distributed between different jobs. (Allen‒van der Velden 2009). Hungarian results from the Graduate Career Tracking System 2020 survey data show that recent graduates considered practical skills that are most important for their work. Meanwhile the less important skills they needed tend to be more general. A stronger deficit between needs and preparedness can be observed for the more pragmatic competencies (practical expertise, application of skills, problem-solving skills), followed by time- and work-management competencies. (Iharosi, 2022).

In our analysis, we use survey data to examine the professional progress of graduates, and the extent to which some dimensions of labour market success are related to the competencies and skills of recent graduates, in addition to the different characteristics of higher education studies, the events of the period since graduation and individual background characteristics. An important factor regarding labour market success is social background. International and Hungarian studies suggest that graduates from socially advantaged backgrounds are more likely to experience more smooth and advantaged career trajectories than graduates from lower classes, plus they are more likely to attain top managerial and professional occupations. (Duta, 2020; Veroszta, 2011). Previous analyses of administrative data on graduates have shown that around a tenth of graduates who finished their studies in 2011/12 move into a managerial position within 7 years of graduation, but there is significant variation in this respect by level of study, type of enrolment (full-time, part-time) and field of study. (Harkányi, 2022).

The aim of our research is to explore the labour market success of recent graduates and the factors that play a part in the process. In addition to objective indicators of success, we investigate the characteristics that influence subjective labour market success and the matching of the two.

Our analysis is based mainly on the EUROGRADUATE survey, which was conducted in the autumn of 2022. We analyse the Hungarian data from this international survey, taking into account previous national surveys and analyses of administrative data as well. In Hungary, since 2010, every year graduates from 1 or 5 years earlier are asked about their further studies and labour market characteristics, and every two years there is also the possibility to obtain information from linking the administrative data of graduates. The Integration of Administrative Databases (IAD) is part of the Graduate Career Tracking System (GCTS), in which factual data stored in other administration data systems (e.g., National Tax Authority, National Health Insurance Fund) are anonymously linked to individual-level data stored in the Higher Education Information System (HEIS). This gives us the opportunity to examine the labour market situation (e.g., labour market status, income) of graduates in the longer term. The EUROGRADUATE survey includes several sets of questions that provide a picture not only of the facts but also of the subjective dimensions of labour market success. The sample consists of 7024 respondents and provides information on the labour market situation of students who graduated 1 or 5 years earlier, including information about the level of competencies required in their current job and their own skills level as well. This allows us not only to identify competencies which are required in their current jobs, but also to calculate discrepancies between their own and required competence levels. First, we construct two separate labour market success indicators based on the measuring of the objective and subjective success variables. Then, using regression analysis, we examine how these can be described by different background characteristics and what differences emerge in the two combined success indicators.

In terms of objective indicators of labour market success, the results of the Graduate Carrier Tracking Survey 2020 (N=7614) so far show that the more time has passed since graduation, the more likely it is to have a more successful labour market career, as measured by objective indicators. In addition, higher level of tertiary education (master's degree as opposed to bachelor's degree) is also more likely to lead to a more successful labour market position when measured by indicators such as income and higher managerial position. The data also show that, among the skills and competencies, theoretical and practical expertise, cooperation and work organisation skills are the most important contributors to objectively successful labour market careers. The EUROGRADUATE 2022 survey data provide an opportunity to consider subjective indicators of success as well, such as satisfaction with certain aspects of the job and the respondent's perception of the adequacy of the labour market position, in addition to objective indicators of success. In relation to the subjective labour market success (e.g., job satisfaction, job matching), it is expected that the inclusion of this dimension will broaden the range of those who can be considered successful in work. We expect that some of those who are not considered successful by objective indicators may also have a successful career path in some other respect due to their personal experience of success. By including partly different individuals in this group, it can be assumed that we will find new or different background factors influencing subjective perception of success compared to background factors influencing objective success.

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