With its publication of the Thematic Review on the Transition from Initial Education to Working Life in 2000, OECD has laid the foundation for the development of indicators regarding the transition from education to work. One of the core activities of OECD’s Network B in 2005 and 2006 was to further develop these indicators by establishing a framework for monitoring transition systems. A transition system is defined as “the social institutions and processes through which a society provides its members to make the transition from the education system to the employment system”. The current report presents the results of this developmental work. It first presents the results of a quick scan carried out among the Network B members on the policy goals for transition systems and relevant indicators used to assess national situations (November 2002-January 2003). Next a theoretical framework is presented that identifies the most relevant characteristics of transition systems. It also relates the outcomes of the transition system to relevant characteristics of the educational system on the one hand and the employment system on the other hand. Based on the results of the quick scan and the developed theoretical framework, an evaluation of the earlier defined policy goals is carried, proposing a new set of 11 policy goals. As a next step, the existing data sources from OECD, EUROSTAT and major international surveys have been analysed to identify relevant indicators for the policy goals as well as descriptors for relevant other aspects of the developed framework. This report presents an overview of these indicators and descriptors. The theoretical framework and the developed set of indicators have been discussed at the March 2006 meeting of the Network B in Washington DC. Members of the network have also sent written comments. All these comments have been taken up in this final version. The report concludes with recommendations for the further data collection strategy.