Dualisation, education and the knowledge economy:comparing Germany and South Korea

In post-war Germany and South Korea, not only was vocational education and training key to the two countries' export-oriented growth models, it also promoted social inclusion. More recently, the knowledge economy has put this skills-based, inclusive growth model under pressure, and we see labour market dualisation calling into question the social contracts in the two countries. Studying education reform in Germany and Korea, we analyse government capacity to reconcile efficiency and inclusion in the knowledge economy, in the context of twin pressures from firms (with changing skills needs) and parents (with high aspirations for their children). We show that the German government, drawing on its corporatist past, has been more successful in mediating these pressures than Korea, where hierarchical business relations undermined employer engagement and more inclusive policies.