Labour markets, human capital and inequality

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The labour market has recovered from the crisis but long-term unemployment remains an issue. High labour taxes undermine formal employment. The vocational education and lifelong learning systems have yet to deliver.
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Labour market mismatches could be reduced by improving career guidance and encouraging vocational training for new entrants, and through requalification and lifelong learning for youth in employment.
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Reform of labour market policy needs to go hand in hand with competition and education policy, as well as be supported by an efficient judicial system and public administration, to improve productivity and employment prospects.
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