The use of formal education in Denmark 1980-1992

Education is classified into several hundred types according to both level and content.

Information about employment/unemployment of the Danish population is registered on an
individual CPR-basis. The basis is mandatory supplementary pension contributions, income
tax etc., and all information is kept on computer files for administrative purposes. Statistics
Denmark run these files with files for education, ending up with statistics for the total
population distributed on: age, gender, education (8 digit codes aggregated to 95 types in this
study), employment according to industry (5 digit ISSC codes and/or NACE codes aggregated
into 117 sectors in this study), unemployed, persons still under education and persons non
active on the labour market for other reasons (like housewife or disabled). This statistics have
been made on an annually basis for the period since 1980.

Moreover the Danish National account system contains annual input-output tables for the
period 1966 to 1992. They include 117 sectors of production. Input-output tables for the period
since 1993 were calculated with different (improved) classification and definitions but were
not available when this research project was started, and they do not include timeseries. In
traditional input-output models output in a country is expressed as the result of final demand.
Let(C%G%I%X) be the sum of final demand: private consumption, public consumption,
investment and exports. Moreover F is the make matrix and (I&A)^&1 is the Leontief inverse
matrix or production multiplier, and we have production as:

Q ' (I&A)^&1F(C%G%I%X)            1 Production as a result of demand for goods and services

in which Q is a vector with production in 117 sectors. Furthermore, let E be a matrix with
education intensities in different industries, and q ^diag a matrix with labour productivity in the
diagonal and zeros in the off-diagonal. Thus we get E as a vector with employment for
different types of education:

E'_Eq diag _Q

2 Use of education as a result of production.

Production can also be written as a result of factor uses. If only labour and education input are
considered we have:

3 Production as a result of supply of education.

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