This article presents an analysis of the higher education-to-work transition from the perspective of the competition for job positions between students and degree holders. The conceptual framework used addresses two factors influencing the success of policies that aim to support higher education-to-work transition of youth in a knowledge society: (i) the extent to which the relationship between the type of transition process and the type of personal capital is self-reinforcing or compensatory; (ii) the nature and intensity of competition for jobs between students in higher education and degree holders. The article discusses limitations of policies aiming to enhance the turnover of students and to support the employability of disadvantaged students. (Contains 1 footnote, 2 tables, and 1 figure.)