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In recent years, the transition from higher education to work in comparative perspective has attracted increasing attention from scholars and practitioners alike. Previous studies reveal similarities and differences in labour market outcomes across countries, but explanatory frameworks mainly refer to fields of study, whereas differences by types of institutions and types of degrees remain largely descriptive. Therefore, this paper specifically focuses on these institutional structures by arguing that the institutional stratification of higher education systems is crucial for shaping graduate employment prospects. More specifically, it is assumed that the higher the vertical differentiation of types of institutions or types of degrees, the stronger the differences of employment outcomes. This assumption is tested empirically by analysing two country cases most different in the institutional set-up of their higher education systems: Germany and Britain. By applying hazard models to the German Socio-Economic Panel and two British cohort studies (NCDS and BCS70), the paper shows that the vertical differentiation of British higher education institutions and degrees differentiates the transitions to the service class more strongly than in Germany. Thus, for understanding transition patterns from higher education to work in comparative perspective, it is necessary to take into account the institutional structure of higher education systems. [ABSTRACT FROM PUBLISHER]

Countries around the world have witnessed educational expansion at all levels, leading to the massification of tertiary education and training. Tertiary education has become a major factor of economic competitiveness in an increasingly science-based global economy and a key response to shifts in national labour markets. Within the EU, the reform of skill formation systems has been advanced by the Lisbon strategy, with the Bologna and Copenhagen processes in higher education (HE) and vocational education and training (VET) articulating and diffusing overarching goals in European skill formation. If European benchmarks call for at least 40% of all 30- to 34-year-olds to hold a tertiary-level certificate, Germany exhibits a relatively low proportion of each cohort entering HE and attaining that qualification level (28%). We analyse this 'German exceptionalism', locating a range of factors in the educational system: the institutional logic of segregation, the structure of secondary schooling, the division or schism between the organisational fields of VET and HE, and limited permeability throughout. Regardless of isomorphic pressures that led Germany to quickly implement undergraduate bachelor's (BA) and graduate master's (MA) courses of study, these factors limit the extent of HE expansion visible among other European countries. [ABSTRACT FROM AUTHOR]