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Expert Network on Economics and Sociology of Education and Training (ENESET)

Skills for employability, economic growth and innovation

Improving employability through better education is vital for economic growth, yet effective measurement and policy design remain complex and underdeveloped.

  • Report

Details

Publication date
28 February 2010
Authors
Directorate-General for Education, Youth, Sport and Culture | European Expert Network on Economics of Education (EENEE)
Geographical scope
  • European Union
Level of education focus
  • Adult education
  • Early childhood education and care (ECEC)
  • Higher education
  • Non-formal and informal learning
  • School education
  • Vocational education and training (VET)
Thematic areas covered
  • Digital education and technological innovation
  • Education-to-work transitions, education and labour market
  • Educational attainment and participation in education
  • Educational effectiveness and efficiency
  • Governance of education
  • Investment in education, economic impact of education
  • Lifelong learning
  • Skills development
  • Whole-school and whole-system approaches and partnerships in education

Description

This report examines the impact of education and training systems on employability, which encompasses not only job access but also earnings, productivity, and adaptability. It highlights the critical role of cognitive skills and human capital—both in micro-level outcomes such as labour force participation and in macro-level impacts on economic growth.

While higher educational attainment correlates with better employment outcomes, the quality of education, particularly cognitive achievement, plays a more significant role. The report also discusses institutional factors, such as curriculum structure, school autonomy, and training relevance, in shaping employability.

Furthermore, it proposes new indicators to monitor the effectiveness of better education systems in supporting employability. It calls for improved data infrastructure, including graduate tracer studies and more accurate measurement of soft skills and non-routine competencies.

Authors

George Psacharopoulos and Martin Schlotter

Cite as

Psacharopoulos, G., & Schlotter, M. (2010). Skills for employability, economic growth and innovation: Monitoring the relevance of education and training systems. EENEE Analytical Report No. 6

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Files

  • 28 FEBRUARY 2010
Skills for employability, economic growth and innovation – Analytical report