An overview of educational systems and labour markets in the Mediterranean Region

Abstract

Investment in ‘human capital’ can contribute to the economy through: (i) the quality of educational systems and the resulting human capital; and (ii) the allocation of human resources into the labour market. Following the same logic, this paper reviews educational systems and labour markets of the Mediterranean region. The first part gives an overview of the level of human capital stock and identifies some common challenges related to the quality of educational systems and reform initiatives. The second part focuses on the structure of labour markets (labour force participation, productivity, unemployment rates, etc.) and highlights the impact of the public sector and informal employment. In addition to the challenges facing the quality of education, labour markets in the region may not be functioning well in the allocation of human resources to their best uses, which is crucial to the success of any policy aimed at fostering economic growth through increased investment in education.