The chapter analyzes how welfare democracies expanded higher education systems. It argues that the “massification” of higher education across the OECD has had starkly different impacts on occupational structure and returns depending on countries’ institutional environment. The chapter identifies four ideal types in terms of the employment prospects and wage premia associated with higher education: credentialism, mismatch, social investment, and “winner takes all,” which correspond closely to the four types of welfare democracies. Employment and wage data drawn from the European Community Household Panel and Social Inclusion and Living Condition datasets is used to demonstrate these patterns. The chapter also uses individual survey data drawn from the European Social Survey to show the effects of graduate skill mismatch on policy attitudes.