This report is a joint contribution by the Foundation and Cedefop to a policydebate that is closely associated with the core mission of both agencies:improving the living and working conditions of Europeans through continuousinvestment in education and training. The report is the outcome of the firstjoint seminar held in the context of a new framework of cooperation recentlysigned by both bodies. It aims to contribute to an important policy debate ona topic that increasingly affects labour markets in all Member States and thecompetitiveness of the EU as a whole.