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This report complements the recent World Bank publication, Growing United: Upgrading Europe's Convergence Machine (Bodewig, C., Ridao-Cano, C., 2018). The Growing United report highlights that, while the European Union is still the "convergence machine" that fosters an unparalleled depth and scope of regional economic integration, it is no longer working for everyone. The report points to a growing divide, reflected in inequality widening among households across and within EU countries. It reviews the underlying factors of this growing divide from two angles, that of people and that of firms, and for both it examines the reasons why some are left behind and others thrive. This review of labor market trends, the underlying causes that determine which skills are in demand, and how they are rewarded, starts with a framing chapter, briefly summarizing trends in inequity in the EU and ongoing discourse on the impact of technological change and other driver of skill demand and supply on labor outcomes. This is followed by a brief description of trend in employment and earnings in the EU since the late 1990's (chapter two); and a brief description of factors that shape skill demand (technology, globalization, aging, and the level of economic development) followed by an analysis of the evolution of the task content of jobs (chapter three). It then proceeds to discuss the parallel impact of supply-side factors, like education and migration, on the resulting labor market trends; and finally proposes an analytical framework to understand the extent to which the interaction of demand and supply factors is altering the labor market structure in the EU (chapter five).

Educational Attainment --- Employment --- Employment and Unemployment --- Gender --- Gender and Economics --- Inequality --- Job Creation --- Labor Market --- Labor Markets --- Polarization --- Poverty Reduction --- Skills Development and Labor Force Training --- Social Protections and Labor

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This report examines one of the most influential forces in any society, one that can contribute both to bridging differences or to deepening divides among people: skills. The skills that people have when they enter the workforce and that they can build on later in their work life determine to a large extent their ability to thrive, to raise families, and to feel vested in their country's economic and political future. Skills gaps and their formation, mirror and exacerbate social divides as well. In the European Union (EU), this issue has new urgency: changes in the labor market have made human capital an increasingly important divider between those how thrive on the labor market and those who not. Importantly, education systems in the EU are not becoming more successful in ensuring that all students acquire the skills needed. This report takes an in-depth look at socioeconomic disparities in educational opportunity and achievement, to aid policymakers in identifying where and how changes can be made to bring more educational equity, ultimately, into the future employment and well-being of Europe's more vulnerable populations. This report explores the extent to which education systems across the EU succeed in providing equal opportunities for all Europeans to build the relevant foundational skills required to thrive in the 21st century economies. The World Development Report 2018, Learning, showed there is a learning crisis around the world. Today, more children are in school than ever before, but there are still millions of children who are not learning, 60 percent of primary school children in developing countries still fail to meet minimum proficiency. Europe is no exception to this learning crisis. While European countries have much higher levels of learning among their students than many other countries, many education systems across Europe have become less successful in ensuring that all students acquire the skills that they need. In other words, just when skills became more important, schools became worse-or at least not any better-at providing equal opportunities to developing them. The WDR 2018 states that schooling without learning is not just a wasted opportunity, but also a great injustice. This report shows that the big education quality challenge in Europe is fundamentally one of equity. Education poverty and inequality have widened in many countries in Europe over the last 15 years.

Curriculum --- Curriculum and Instruction --- Education --- Education for All --- Educational Institutions and Facilities --- Inequality --- Poverty Reduction --- Skills Development and Labor Force Training --- Social Protections and Labor --- Vocational and Technical Education