You're using an outdated browser. Please upgrade to a modern browser for the best experience.
Peer Reviewed
Education and Employment
This is a peer-reviewed entry published in Encyclopedia Journal, full entry can be found at 10.3390/encyclopedia5020085

This entry provides a detailed examination of the relationship between education and employment outcomes. It presents the conceptual framework which connects them and discusses the theories on their nexus, and is the first study to attempt this endeavor. Moreover, it analyzes the factors which influence the education–employment relationship, which the existing literature has not comprehensively addressed. In addition, this entry employs data from Eurostat which points to a beneficial role of education on employment, especially of tertiary education. The entry also highlights the role of factors such as the quality and relevance of education, the development of employability skills, the selection and matching processes in the labor market, and the broader economic and social contexts. Within this framework, policymakers should prioritize investments in education and training programs that align with labor market needs, promote both general and vocational skills development, and foster closer collaboration between educational institutions and employers.

education employment human capital conceptual framework theoretical considerations labor market European data
Education and employment are two fundamental pillars of economic and social development, intricately linked in shaping the trajectory of individuals and societies. Education is a key tool for equipping individuals with knowledge and skills. These competencies enhance both employability and productivity in the labor market [1][2][3]. Employment, in turn, provides financial stability, career growth, and social mobility, reinforcing the role of education as a key driver of economic success [4][5]. The connection between education and employment has been widely studied across various academic disciplines, including economics, sociology, and labor studies, reflecting its significance in policy formulation and workforce planning [6][7][8][9].
Numerous studies have highlighted the significant impact of educational attainment on employment outcomes [10][11]. Higher levels of education are associated with increased probabilities of employment, better job quality, higher earnings, and better prospects and outcomes in the labor market [12][13][14]. This is because education provides individuals with the knowledge, skills, and credentials that are in high demand in the labor market. Furthermore, education can have indirect effects on employment by improving individuals’ health, strengthening social networks, and enhancing cognitive abilities, thereby fostering greater employability and labor market success [15]. However, access to these benefits is not equally distributed. Education systems often reflect and reproduce existing social inequalities, favoring individuals from more privileged backgrounds while marginalizing others. As a result, unequal access to quality education can exacerbate disparities in health, social capital, and cognitive development, ultimately hindering employment opportunities for disadvantaged groups and reinforcing cycles of exclusion and economic vulnerability. Understanding the complex interplay between education and employment is crucial for informing effective policies and programs aimed at promoting economic and social well-being.
The existing literature suggests that the relationship between education and employment is not straightforward, and various factors can influence this dynamic [16]. For instance, the selection of educated individuals for more effective training programs can contribute to their higher employability, rather than education itself. Additionally, the educational process, including information construction, teaching reform, and employment guidance provided by educational institutions, can have a significant impact on students’ employment outcomes [17]. Studies have also shown that the strength of the education–employment link varies across countries, with gender norms and sociocultural factors playing a crucial role in moderating this relationship. In some contexts, higher levels of education may not translate into commensurate employment opportunities, due to factors such as economic conditions, labor market structures, and educational system quality [18][19].
This entry contributes to the existing literature by providing a comprehensive examination of the relationship between educational attainment and employment outcomes, presenting the theories on the relationship between education and employment; this is the first study to attempt this endeavor. The entry also presents a conceptual framework of the relationship and discusses the factors which influence the education–employment nexus, which the existing literature has not comprehensively addressed. Moreover, our work presents data on their connections from European countries, and finally, it highlights the implications and the conclusions that are derived from our analysis. By doing so, this entry aims to contribute to the ongoing discourse on how education systems can be reformed to better equip individuals for meaningful and sustainable employment in an ever-changing global economy.

References

  1. Archer, M. Social Origins of Educational Systems; Routledge: Abingdon, UK, 2013.
  2. Roberts, K. School Leavers and Their Prospects; OUP: Oxford, UK, 1984.
  3. Green, A. Education and State Formation; Palgrave Macmillan: London, UK, 1990.
  4. Bisht, N.; Pattanaik, F. Exploring the Magnitude of Inclusion of Indian Youth in the World of Work Based on Choices of Educational Attainment. J. Econ. Dev. 2021, 23, 128–143.
  5. deBruin, A.; Dupuis, A. Making Employability ‘Work’. J. Interdiscip. Econ. 2008, 19, 399–419.
  6. Sheehan, J. The Economics of Education, 1st ed.; Routledge: Abingdon, UK, 1973.
  7. Psacharopoulos, G. Education and Development. World Bank Res. Obs. 1988, 3, 99–116.
  8. Psacharopoulos, G.; Patrinos, H.A. Returns to Investment in Education: A Decennial Review of the Global Literature. Educ. Econ. 2018, 26, 445–458.
  9. Woessmann, L. The Economic Case for Education. Educ. Econ. 2015, 24, 3–32.
  10. Harbison, F.H.; Myers, C.A. Education and Employment in the Newly Developing Economies. Comp. Educ. Rev. 1964, 8, 5–10.
  11. Hinchliffe, K. Education and the labour marker. In Economics of Education: Research and Studies; Psacharopoulos, G., Ed.; Pergamon Press: Oxford, UK, 1987; pp. 315–323.
  12. Kokkinopoulou, E.; Vrontis, D.; Thrassou, A. The Impact of Education on Productivity and Externalities of Economic Development and Social Welfare: A Systematic Literature Review. Cent. Eur. Manag. J. 2025; ahead-of-print.
  13. OECD. Education at a Glance 2024: OECD Indicators; OECD Publishing: Paris, France, 2024.
  14. Budría, S.; Telhado-Pereira, P. The Contribution of Vocational Training to Employment, Job-related Skills and Productivity: Evidence from Madeira. Int. J. Train. Dev. 2009, 13, 53–72.
  15. Zajacova, A.; Lawrence, E. The Relationship Between Education and Health: Reducing Disparities Through a Contextual Approach. Annu. Rev. Public Health 2018, 39, 273–289.
  16. Sanyal, B.C. IIEP Research on Higher Education and Employment: A Response. Comp. Educ. Rev. 1982, 26, 442–448.
  17. Zhong, L.; Li, X.; Sun, S.; Law, R.; Qi, X.; Dong, Y. Influencing Factors of Students’ Learning Gains in Tourism Education: An Empirical Study on 28 Tourism Colleges in China. Sustainability 2022, 14, 16601.
  18. Bing, B. The Impact of Higher Education on High Quality Economic Development in China: A Digital Perspective. PLoS ONE 2023, 18, e0289817.
  19. Yang, L.; Cao, S. What Factors are Driving the Rapid Growth of Education Levels in China? Heliyon 2023, 9, e16342.
More
© Text is available under the terms and conditions of the Creative Commons Attribution (CC BY) license; additional terms may apply. By using this site, you agree to the Terms and Conditions and Privacy Policy.
Upload a video for this entry
Information
Subjects: Education & Educational Research
Contributors MDPI registered users' name will be linked to their SciProfiles pages. To register with us, please refer to https://encyclopedia.pub/register :
Georgios Giotis
,
Themistoklis Gogas
,
Konstantina Gouda
View Times: 97
Online Date: 20 Jun 2025
Table of Contents
    Academic Video Service
    Feedback