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The importance of skill formation for young people and the challenges of youth unemployment and underemployment are at the forefront of global development agendas. However, there is still an open debate about the most adequate policy frameworks to tackle these societal challenges and, particularly, about the role that the state and the market should play in the coordination of skills supply and demand. Taking Chile as a case study, the paper analyses how the market model of skill formation is re-contextualised by practitioners and other stakeholders at the local level. Through a realist evaluation approach, the paper tests to what extent the underlying theoretical assumptions of the market model hold up when confronted with the reality of the contexts in which young people, education providers and employers make decisions. The case of Chile is particularly interesting for the comparative literature because of its extreme neoliberal orientation and the centrality of the market in the allocation of resources and opportunities among different social groups. The findings show the limitations of the market for coordinating the supply and demand of skills and its negative consequences on the educational and work prospects of young people, especially the most disadvantaged..

In the aftermath of the 2008 Global Financial Crisis, European authorities reinforced the economic objectives of European lifelong learning policy, promoting employability solutions to address youth unemployment, and increasing their political influence on the implementation of national lifelong learning reforms. This article investigates to what extent these supranational policy orientations have been translated into concrete national lifelong learning initiatives. Although European countries were not equally affected in terms of time and intensity by the rise in youth unemployment rates, the political responses from their governments shared a central focus on employability solutions to youth unemployment in lifelong learning policy reforms. Our comparative analysis shows how different lifelong learning policy initiatives managed to ‘educationalise’ a structural economic problem (i.e. youth unemployment) into an individual educational concern (i.e. lack of education and skills). We argue that the ‘educationalisation’ of youth unemployment through lifelong learning policies is a crisis management strategy, which has allowed governments to focus on the individual symptoms of the problem while avoiding offering solutions to the underlying structural causes of young people’s poor labour market prospects.

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The interest in educational and professional aspirations of students transiting to post-secondary education has gained prominence in academic debates and policy agendas internationally. Political interventions for raising aspirations quite often draw on narrow instrumental and rationalistic assumptions of individual decision-making that, as we will argue, do not capture adequately the meanings students attribute to these aspirations. By means of in-depth interviews and combining a critical realist approach to social action with capabilities approach, the paper explores the educational and professional aspirations of students at the end of secondary TVET in Chile. We consider that high educational aspirations of secondary TVET students in Chile need to be understood as a reflexive response to significantly high social inequalities in the country, the precarity of working conditions in a highly liberalised labour market, and the enduring neoliberal tenet of meritocracy. We also argue that understanding aspirations is key to reimagine TVET's roles and purposes at individual, institutional and national levels, towards fairer opportunities for human development.