Education and its effects on the labour market in Macedonia

Abstract

Human capital represents the most valuable asset held by most individuals. People accumulate human capital through investments in schooling and training. Governments subsidize many forms of human capital accumulation including primary, secondary and post-secondary schooling.Education plays a central role in preparing people to enter the labour market, offering them the opportunity to improve and increase their knowledge, skills and abilities. In recent decades, there has been rapid expansion of higher education across many countries. This has had important and profound effects on labour markets and the way in which employers use highly educated labour.The level of education is one of the key predictors of long-term success in the labour market, it is related to the likelihood to be employed, the amount of salary and the quality and social attractiveness of the job. Therefore, the aim of this study is to identify and analyze the relationship that exists between education and labour market in Macedonia. In order to reach this aim, information included in the statistical yearbooks (secondary data), reports and in different researches that have been made in different countries are analyzed and interpreted. This study provided evidence for the positive effects of education on the labour market in Macedonia. There is a positive link between the level of education and access to work and another positive effect of education on the labour market is related to the level of income