The Philippines enacted RA 10931 or the Universal Access to Quality Tertiary Education Act (UAQTEA) in 2017 with the objective of increasing the participation of Filipinos in tertiary education by removing financial barriers to access. This study provides an initial empirical assessment of the impact of the law on the Philippine labor market, focusing on youth employment outcomes. It first reviews the literature relating to human capital theory, credentialism, and credential inflation, highlighting the potential mismatch between increased higher education access and labor market demands. Using Labor Force Survey data from 2016 and 2022, the analysis reveals significant changes in the labor market following UAQTEA's implementation. While the proportion of college graduates in the youth labor force increased significantly, the labor market appears to lack the absorptive capacity to properly utilize this expanded college-educated workforce. Evidence suggests college graduates are increasingly taking jobs that do not require college-level skills, potentially crowding out non-degree holders. Further, the wage premium for college graduates has declined substantially, with anemic wage growth among degree holders. This study, therefore, recommends refocusing education policy away from increasing the number of college graduates and towards increasing the number of graduates with economically valuable skills. A more targeted approach will optimize public investment to meet labor market demands while improving the economic prospects of
Filipino youth.