Social Agenda Issue 53 - EN

Skills development and education have a crucial role to play in the face of inherited social disadvantages and persisting gender inequality SPECIAL FEATURE Overcoming social inequalities Knock-on effect: Investment in skills and education at an early stage of life triggers a domino effect both on young and older workers When analysing the skills issue in depth, as does the 2018 Employment and Social Developments review (see page 14), the issue of inherited social disadvantage comes up immediately. People with a lower socio-economic background stand a much smaller chance to attain higher education. This is a known fact but it now appears that even if they manage, against all odds, to climb the education ladder, these people still continue to be at a disadvantage on the labour market, compared to those with a more advantageous background, everything else being equal. Social heritage is a multiplier of under-achievement. In practice, it leads to part of the EU workforce being de facto excluded from the labour market, due to the socio-economic background of its members. Working both ways However, the multiplier effect of social heritage works both ways: In some countries, it is positive and carries educational progress from one generation to the next. To achieve such a reversal, investing in people in a life-cycle approach is the key. Investment in skills and education at an early stage of life triggers a domino effect on young and older workers. A model simulation shows that, in addition to the personal development it brings, investing in people in a life-cycle approach also generates high macro-economic returns. It is this type of investment that encourages firms to equip better skilled workers with innovative capital. © Belga Image 1 6 / SOC I A L AG E NDA / NOV E MB E R 2 0 1 8