This study had the following general goals: a) Map some of the political and social factors that prompted the establishment of two-years Technological Universities in Mexico; b) Describe the main features of the model and how it differs from other models; c) Discuss Neoliberal Human Capital Theory as one of the main theoretical backdrop for expanding this kind of institutions; and finally, d) Assess the model’s strengths and weaknesses. To accomplish these goals, the study drew data from existing policies and from a set of six interviews to human resources directors in Monterrey area, Northern Mexico. These recruiters belonged to the most important areas of production and services in the region. Findings show that graduates with two-years degrees have higher chances of getting hired. Thus, poor students may have better opportunities, one of the basic purposes of this type of degree. However, data evidenced some level of negative stratification for key positions that goes against general belief of continuous improvements for people with diplomas. Also, some of the Human Capital Theory’s central assumptions seemed to be challenged by the way jobs develop in Mexico. In addition, the Mexican Technological University System faces several challenges and competition with existing forms of tertiary institutions. This paper is a significant contribution for policy-makers who need to understand what employers expect from the Technological University and its graduates. Policy alternatives are discussed.