This paper provides new insight into the role of generic and vocational competencies during the transition from education to the labor market. Using data on the labor market situation of dutch higher education graduates, we analyze the allocation over different educational domains, the incidence of on-the-job training and its impact on wages. The results reveal the different roles of competencies. Vocational competencies positively influence the chance of being matched to an occupation inside the own domain. Generic competencies positively influence both the chance of being matched to an occupation outside the own domain and the training participation.