Aliki Mouriki
We observe that in Spain and Greece, social transfers, although a significant and growing share
of GDP at least in Greece, have a very limited effect in reducing the share of the population that is
at-risk-of-poverty, as opposed to Denmark and the Netherlands, where social transfers seem to be
very effective in bringing down the risk rate. Even employed persons run more than twice as greater
risk of being poor in Greece and Spain than in Denmark, suggesting a larger incidence of working
poor in these two countries, but also in the Netherlands.
6.1.3. Education and skills
Ongoing education and training is considered as key for the success of the flexicurity agenda,
as it enhances the employability and adaptability of the workforce and provides individuals with the
necessary skills that will allow them to respond to rapid technological change. The differences in the
level but also the effectiveness of spending on education and training across the 4 countries under
consideration are very eloquent.
In Greece, despite a rise in formal education, the expenditure rate remains one of the lowest
among the OECD countries, barely 3.4% of GDP (2004 comparative figures), as compared to 7.2%
in Denmark, 5.1% in the Netherlands, 4.7% in Spain and 5.8% in the OECD-average (see OECD,
Education at a glance, 2007). Even more pronounced is the low level of spending on vocational training
and lifelong learning that continue to absorb very limited funds and demonstrate a low effectiveness
compared to other EU member states. High enrolment rates in upper secondary and tertiary educa-
tion indicate a drive towards formal education and a narrowing of the gap with the more developed
OECD countries. In 2005, the share of the population aged 20-24 years having completed at least
upper secondary education was 84%, as opposed to 74.5% in the EU-15, whilst in Spain, the rate was
below the EU-15 average. The enrolment rate in tertiary education of young people aged 20 years in
2004 was as high as 60.2% in Greece, against 37.7% in Spain and 33.1% in the EU-15. However, the
completion rate was much lower in Greece than in Spain. Overall, Spain possesses a higher share of
high educated working-age population compared to Greece and has developed an important pool of
highly educated population of working age. On the other hand, in Spain, the early school leaving rate
is 31%, the third highest in the EU, and conceals considerable regional variations. Greece, by con-
Page • 60