Much labor market research has found that the number of highly educated workers increases faster than the number of higher-level jobs, with the result that the labor force is beoming increasingly underutilized. Here, this situation is reviewed from other theoretical viewpoints. It is argued that even a small upgrading of the job structure may lead to a substantially increased demand for higher educated workers. Moreover, an increased number of highly educated workers promotes better job performance & facilitates technological innovation. 1 Table, 2 Figures, 48 References. AA