OECD Economics Department Working Papers

1815-1973 (online)
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Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.


Enhancing skills to boost growth in Hungary You or your institution have access to this content

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Gabriel Machlica1
Author Affiliations
  • 1: OECD, France

25 Jan 2017
Bibliographic information

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Skill requirements in the labour market have significantly changed over the past two decades. The restructuring of the economy is making the labour market increasingly knowledge-based. The education system has reacted to this structural change, but as the pace has been relatively slow, many graduates remain without adequate skills and insufficiently prepared to apply knowledge in unfamiliar settings. Moreover, strong selectivity early in the education system reinforces student’s socio‑economic background, leading to an excess of low skilled workers with poor labour market prospects. This contributes to persistently low employment rates and low productivity gains, slowing down the income convergence process. The education system needs to improve learning outcomes by better aligning student qualifications with labour market needs. Improving overall educational outcomes would also make the education system more equitable and inclusive. Bolstering the supply of skills requires lifelong learning and improving the access to labour market to those who have left the education system without proper skills. In return, this will also increase “on‑the‑job” training, which is a key driver of acquiring competences after graduation. In addition, mobilising untapped skill resources, particular educated younger women, would raise employment, which is needed to confront the labour market problem arising from population ageing.
active labour market policies, skills, vocational education, training, labour market
JEL Classification:
  • I23: Health, Education, and Welfare / Education and Research Institutions / Higher Education ; Research Institutions
  • I25: Health, Education, and Welfare / Education and Research Institutions / Education and Economic Development
  • I28: Health, Education, and Welfare / Education and Research Institutions / Government Policy
  • J48: Labor and Demographic Economics / Particular Labor Markets / Public Policy
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