This paper examines the relationship between educational mismatches and skill mismatches, and their effects on wages, job satisfaction, and on-the-job search. The authors use data from a comparative study of the labor market situation of graduates from tertiary education in 11 European countries and Japan. The study finds that educational mismatches significantly affect wages, but skill mismatches do not fully explain these wage effects. Skill mismatches, however, have a strong impact on job satisfaction and on-the-job search. The results challenge the assignment theory, which posits that educational mismatches imply skill mismatches. The findings suggest that the match between individual human capital and job characteristics is crucial for labor market outcomes, but that the distinction between schooling and skills is important. The study also highlights the need for better measures of skill underutilization and skill deficits to improve the understanding of labor market dynamics.This paper examines the relationship between educational mismatches and skill mismatches, and their effects on wages, job satisfaction, and on-the-job search. The authors use data from a comparative study of the labor market situation of graduates from tertiary education in 11 European countries and Japan. The study finds that educational mismatches significantly affect wages, but skill mismatches do not fully explain these wage effects. Skill mismatches, however, have a strong impact on job satisfaction and on-the-job search. The results challenge the assignment theory, which posits that educational mismatches imply skill mismatches. The findings suggest that the match between individual human capital and job characteristics is crucial for labor market outcomes, but that the distinction between schooling and skills is important. The study also highlights the need for better measures of skill underutilization and skill deficits to improve the understanding of labor market dynamics.