This study explores the implications of higher education on earnings in Finland. The challenges as well as opportunities of obtaining a university degree as compared to graduating from polytechnics are evaluated using the REFLEX (The Flexible Professional in the Knowledge Society) data. As a Nordic country, Finland is known for its educated population and the public emphasis on continuous learning but, nevertheless, there has been comparatively little research published internationally. The authors address the criticisms and drawbacks of higher education by analysing the performance of Finnish graduates in the labour market using the analysis of covariances. While debates concerning additional financing for higher education persist, it is acknowledged to be one of the solutions to the aging population and related economic problems in Finland. Based on the results from various Finnish educational institutions, the authors analyse the degree of match between investment in human capital and market demand. (Contains 4 tables and 1 figure.)