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Enhancing skills to boost growth in Hungary

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  • Gabriel Machlica

Abstract

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. Améliorer les compétences pour dynamiser la croissance en Hongrie Les compétences recherchées sur le marché du travail ont sensiblement changé au cours des vingt dernières années. Du fait de la restructuration de l'économie, le marché de l'emploi est de plus en plus fondé sur la connaissance. Le système d'enseignement s'est adapté à cette évolution structurelle, mais dans la mesure où le rythme de cet ajustement a été relativement lent, de nombreux diplômés restent privés de compétences adéquates et insuffisamment préparés à appliquer leurs connaissances dans des situations qui ne leur sont pas familières. En outre, la sélectivité forte et précoce qui caractérise le système éducatif accentue l'influence du milieu socioéconomique des élèves et des étudiants, ce qui se traduit par un excédent de travailleurs peu qualifiés dont les perspectives d'emploi sont médiocres. Cela contribue à la faiblesse persistante des taux d'emploi et des gains de productivité, ce qui ralentit le processus de convergence des revenus. Il faut améliorer les résultats du système d'enseignement, en assurant une meilleure correspondance entre les qualifications acquises et les besoins du marché du travail. Une amélioration globale des résultats du système d'enseignement le rendrait également plus équitable et inclusif. Pour renforcer l'offre de main-d'oeuvre qualifiée, il faut s'appuyer sur la formation tout au long de la vie et améliorer l'accès au marché du travail des personnes ayant quitté le système scolaire sans compétences adéquates. Cela se traduira par un développement de la formation « en cours d'emploi », qui est un vecteur essentiel d'acquisition de compétences après l'achèvement de la formation initiale. En outre, mobiliser les ressources en main-d'oeuvre qualifiée inexploitées, en particulier les femmes jeunes ayant reçu une formation, permettrait de rehausser le taux d'emploi, ce qui est nécessaire pour s'attaquer au problème que représente le vieillissement démographique pour le marché du travail.

Suggested Citation

  • Gabriel Machlica, 2017. "Enhancing skills to boost growth in Hungary," OECD Economics Department Working Papers 1364, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1364-en
    DOI: 10.1787/ba9ac297-en
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    active labour market policies; labour market; skills; training; vocational education;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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