Transnational Capital/Labour Flows Adapting Labour Market Policy to a Transformed Employment Structure

The shift towards recognition of a capital-labour flows have occurred within the broader context of a globalized knowledge economy and a global race for skills. Change in a country’s employment structure is shaped by the evolution of skill supplies, implies that educational expansion and migration flows are crucial to understand occupational change. The local communities, Taiwan is in competition for its share of the intellectual capital and for the best skilled migrants. The aim is to disentangle the strategy applied by Taiwan to adapt its national labour markets to increasing globalization and flexibility demands. The paper is presented as follows. First, to compare national patterns of job growth in Taiwan, extending the discussion of the reach of job polarization. Second, to examine differential patterns, building on the analysis of educational patterns of employment growth. Third, to go about understanding the relationship between capital flows, labour flows and em/migrant resettlement patterns. The impact of economic globalization has on the flows of the highly educated, and documents incentive programs put into place by the government to tap highly educated talent abroad are assessed. A final summary reflects on the key finding, its contribution to the research arena, as well as open questions for future research. The paper delivers both quantitative and qualitative data as well as an account of the relevant labour market reforms.


Introduction
International economic links have strengthened due to growing trade and capital flows. Cross-border financial flows have become an important feature of the global economy, reflecting global financial integration. The global financial crisis has reinforced the financial linkages across countries, and the resulting rise in volatility generated by capital flows. Processes such as outsourcing, deregulation of the labour market, and growing demands for employee flexibility have combined to create an imperative of high mobility. Contemporary work calls for flexibility as the need for constant reskilling. The economic activity of the population can be improved by enhancing the labour force's pool of qualifications and investing more in human capital. While the goal of political reform and economic growth is a knowledge-based society, employees tend to be geographically flexible and mobile, contributing to the diversity of the workforce. The importance of investigating the social context and personal circumstances of high mobility is underlined, and forces to think about the importance of economic, social, and political differences among territorially defined states versus the benefits of crossborder integration.
Innovation is the key factor in promoting competitiveness in a globalizing knowledge economy, and labor market mobility can be important for generating diversity of knowledge. At the heart of these changes was to produce available labor, to promote an entrepreneurial way of thinking, and to broaden the worker's capacity to acquire entrepreneurial competences. It is necessary to think about new ways to develop a high qualification level among the workforce. Strategies of youth, education, labour market and social policy emphasise the necessity to promote skills and competencies of young people that are seen as conducive to improving the economic productivity and competitiveness. The increased competition on labour markets and the shift towards the knowledge society will create demand for highly skilled labour, and increase the importance of education on the labour market. Employment and education have become indicators of the conditions young people are facing during the period of financial crises and socio-political reform. It deserves to explore how educational strategies are implemented and if they enable young people to convert knowledge and skills into capabilities to act as participating active citizens.
The aging of the population and the evolution of the labour force as well as the migratory policy are explored. Indicators of human capital and industry composition perform, talent, and technology explain job and income growth and job instability. Without structural changes to global economic systems and broader opportunities for reskilling, the future of employment is dismal for many. The important feature of an educational system is the strength of the institutional linkages between education and labor market. Young people are confronted with an increasing fragmentation and flexibility and will have to cope with the rotation between diverse work fields and temporary flexible employment. The paper proposes alternative ways of rethinking the impact of mobility to embed young people's experiences of international mobility within a world characterized by diversity. This intertwining of the global and the local is discussed. The challenge is combining quantitative and qualitative data according to the methodological design and in the analytical phase. The article concludes with some policy recommendations.

Aims & Underlying Assumptions
The important problems of the labour market will be the shrinking of the labour force and then aging of the labour force. This paper covers the period 1960-2016 and are formulated in terms of aging, capital/labour flows and em/migrant resettlement patterns. These predictions anticipate different effects depending on whether one considers the impact of aging on capital versus labour markets. In particular, capital flows seeks out young workers, locations with higher savings rates, and countries with lower social security taxes. This drives capital out of an aging country as investors seek low-cost workers. It is hope to find differing effects from the capital and labour market implications of aging. In order to explore how to enable young people to be capable as participants in labour markets, the factors that promote young people's capabilities for education and for work, have to be considered altogether. In particular, there has been a shift from labor market flexibility to the flexibility of educational systems. The fight against youth unemployment should start at school, not after school.
The paper is structured as follows. Section 1 consists of the themes: (a) capital and labour market implications of aging; (b) capital flows and impact of financial globalization; (c) educational patterns of employment growth; (d) relationship between capital/labour flows and em/migrant resettlement patterns and (e) impact economic globalization has on the flows of the highly educated. Section 2 describes the data and empirical methodology used. Section 3 discusses the empirical evidence for the local communities, Taiwan. Section 4 summarizes the main findings and policy implications. The paper summarizes current thinking on what adapting labour market policy to the transformed employment structure can best address these issues. Some final remarks conclude the paper after discussing the main implications. The paper highlights the challenges posed by flexicurity and the integration of the educational system to the labor market. An emerging new form of social inequality as a consequence of changing education policies would also been explained.

The Data Sources and Measures
The author draws on empirical evidences to analyze the role of macroeconomic factors -technological change and globalization, and the role of structural policies -education policy, as well as labor and product market regulation, in shaping the transnational capital/labour flows. The importance of using mixed methods (i.e. combining both quantitative and qualitative methods) and complementing quantitative information by providing a deeper understanding about the "adapting labour market policy to a transformed employment structure" has been underlined. There is the necessity to frame and extend the analysis to other relevant qualitative aspects such as "capital and labour market implications of aging", "educational patterns of employment growth", "relationship between capital/labour flows and em/migrant resettlement patterns", and "impact economic globalization has on the flows of the highly educated". Social space, called the volume of global capital, is a product of the correlation between these variables that include education, income, and occupational status. The data used in this study comes from the database "Directorate General of Budget, Accounting and Statistics (DGBAS)" and "Workforce Development Agency, Ministry of Labor (MOL)", provided by the Executive Yuan, R. O. C.. Using a time-series analysis to explore the relationship between changes in public policy and their effects on the adapting labour market policy to a transformed employment structure, has a varying impact on the incidence of those demands. This paper highlights inequality trends and assesses different policy approaches to reduce labor and disposable income inequality.

Theoretical Foundations
One feature of modern economies is the mobility of financial capital [1]. Financial globalization and cross-border capital raisings catalyze domestic financial market development and improve institutional governance [2]. Access to foreign capital would help the emerging markets grow faster [3]. Rapid economic growth will open up new possibilities of economic cooperation, and there will be an increased flow of people [4]. There is increasing competition to fight for the best intellectual capital [5]. In order to maintain economic prosperity, countries will have to rely on immigration [6]. Such a reallocation poses a challenge for the labour market, since it requires mobility of workers across sectors [7]. Technological progress and economic activities are becoming skill-intensive, and will create demand for skilled labour force [8]. Active labour market policies promise investments in the potentials of individuals to promote labour and social integration [9]. Employment volatility and a globalized labor market will have an impact on future jobs [10]. Mobility reveals society dynamics more generally [11]. Mobility across organizational borders contributes to professional and social relationships [12]. Facilitating intergenerational mobility allows society to tap the talents of people [13]. Jobs requiring mobility serves as an instrument to accumulate human capital [14].
As globalization has proceeded, locals have become more prominent economic governance actors [15]. The impact of knowledge-intensive service firms is derived from their capacity to facilitate innovation [16]. The diversity of industries promotes the knowledge spillovers, the innovation and economic growth [17]. Foreign direct investment can benefit host economies through knowledge spillovers [18]. Geographical proximity enables firms to exchange knowledge among each other [19]. Clusters generate knowledge spillovers and draw upon a pool of skilled labor [20]. Clusters are becoming more vital in the global market where localities have to face with an increasing competition fostered by high mobility [21]. The clustering effect of human capital focuses on the capacity of localities to enable new knowledge to circulate more efficiently [22]. The knowledge-based capital is a source of regional innovation capacity which supports that regions differ in the way they capture talents [23]. Creative economy is expressed in the ability to create and circulate intellectual capital, with the potential to generate income and jobs [24]. With businesses making transactions beyond their borders, they want employees to maximize their pro-fit [25]. Jobs will be created for the well educated and highly skilled part of the workforce [26]. Competitive advantage is increasingly derived from investments in human creativity and innovation.
Human capital is used as a variable to explain differences and it is a proxy of education of individuals [27]. Education contributes to economic productivity through transmission of knowledge, national workforce development, and global competitiveness. Equity in access to higher education is positively correlated with human capital development and with the economic competitiveness of nations [28].
Knowledge-based economy highlighted the importance of investments in education [29]. Those individual possessing greater human capital are the ones more likely to recognize those opportunities, leading to economic change [30]. A country's productivity and economic growth are seen to depend on the education possessed by its labour force [31]. Education is a common that provides individuals with knowledge to deal with changes [32]. As the level of education of individuals increases, the more they participate in the workforce, and the risk of unemployment declines. The importance of educational resources is not concerned with increasing economic productivity but also with reducing inequalities and empowering young people to lead integrated lives [33].

Result: Local Community in Its Global Context
In the context of an increasingly globalized world which itself is undergoing a period of crisis and uncertainty, gross flows raise financial risks. A domestic credit boom may be amplified by cross-border debt inflows into the domestic banking system. By expenditures on gross domestic product, the amount (Million N.  Table 2. Capital inflows can make Taiwan more vulnerable to financial crisis. The worry on the financial stability side is that large inflows may lead to excessive foreign borrowing and foreign currency exposure, adding fuel to a domestic credit boom and domestic asset price bubbles. Dealing with capital flows requires lowering interest rates to discourage large inflows, but low interest rates are also expansionary for the domestic economy and may not be the right policy choice for an inflation-targeting central bank.  Taiwan exports have fared relative to world exports, and Taiwan's market specialization is towards products and markets which are dynamic. According  Table 3. Taiwan has a revealed comparative advantage in the product groups: high skill and technologyintensive manufactures, high-tech knowledge-intensive services and knowledge-intensive services. The first 2 groups are ones where multinational investment dominates economic activity, and the third also has a strong multinational presence. Taiwan attracts foreign direct investment (FDI) as a means of generating higher economic growth by providing to domestic firms both a source of capital financing and productivity externalities. Governments offer incentives calculated to attract foreign firms and foster relationships between multinational enterprises (MNEs) and local firms. As the government faces the criticism for the shortterm capital inflows, it would have been more hesitant to engage in the fiscal expansion.    Table 3. The industrial sector has played a major role in the transformation of the economy, with growth in manufacturing value of 3.06% GPD in 2016. The services sector has also expanded rapidly during this period, accounting in 2016 for over half of employment and output in the economy. The majority of firms are in the services sector. The proportion of Gross Domestic Product by kind of activity in the agricultural sector declined steadily between 1981 and 2016 while the proportion of Gross Domestic Product by kind of activity in industry and services grew. Since the late 2000s the relative importance of the agricultural sector the overall economy has declined. In 2016, agriculture accounted for.0179 of GDP compared with.3548 and.6262, respectively, for industry and services. High-tech manufacturing employment accounted for an increasing proportion of total employment in the second half of the last decade. The services sector is clearly the most important sector in terms of employment and capital in 2016. Table 4 illustrates changes in the relative contributions of the "Intangible Investments, Professional Technique Trades and Product Innovation or Technique Upgrade of Enterprise Units in All Industries in Taiwan, end of 2011". The grand total of proportion to operating revenues (%) of production innovation, technology upgrade is 11.10. By transactions of professional techniques, the 4 priority items in the amount of oversea purchasing (NT$1,000) are follows: Manufacturing            The amended statute for industrial innovation was approved by the Legislature November 3, 2017. The amendments consists of four components: promoting innovation, strengthening R&D, guiding innovation, and revitalizing the environment. Innovation policy had long been anchored in a type of technology-push policy. Industrial parks were built by the government and had the goal of fostering industrial location as a highway for economic growth and job creation. These technological parks are intended to be connected to the dynamic sectors of the third industrial revolution: electronics, computers, new materials, telecommunications, and later biotechnology. The government plays a key role in facilitating economic growth through its investment in infrastructure and stimulation of capacity development and mass production to ensure full employment. One important policy instrument has been restructuring programmes that guide firms from mass production to flexible specialization. Companies have to constantly develop cutting-edge products and processes to maintain a competitive edge in a global economy. This necessity to innovate and to find new sources of knowledge is reflected in the increasing internationalization of R&D activities. Local governments, workers and consumers welcome foreign investments, new knowledge and opportunities. Foreign firms are tapping into localized knowledge clusters to augment their competitive advantage. Major labor market reforms in Taiwan are essential to spur job creation, lower unemployment, and help prevent further sliding into cycles of long-term deterioration of output growth. The innovative performances such as ICT is connected to the flexibility of its labor markets, which promote diversity in the enterprise knowledge base. Industrial policies emphasize strengthening the capabilities of firms and developing their skills, knowledge, and networking abilities. Innovation policy had long been anchored in a type of technology-push policy. Taiwan has become the world's leading producer and exporter of value-added creative products. Taiwan views creativity as vital to the economy to an innovationdriven global economy.
By 2009 Taiwan's unemployment rate was 5.85 per cent, which is shown in Table 9. These slightly improved unemployment rates understate the extent of hardship experienced by young people as a result of the crisis. In the 2009, youth (aged 15 to 24) unemployment had reached 14.49 per cent, compared with 5.93 per cent for the adults (aged 25-44 years). By 2009 Taiwan's labor force participation rate was 57.9 per cent, which is shown in Table 10. In 2009, youth (aged 15 to 24) accounted for 28.6 of labor force participation rate compared with 84.2 and 60.3, respectively, for the adults (aged 25-44 years) and the adults (aged 45-64 years) services. The major problem of the Taiwan labour market policies are the worryingly high level of unemployment and the development of atypical forms of employment. Young people are instead finding themselves without a job and potentially falling into longterm unemployment. This will raise crucial issues if it results in a process of increasing job insecurity and increasingly precarious living standards. Table 11 shows that the overall age structures of the population of Taiwan are far from being stationary. That economic landscape has now radically changed, with a complex web of production and supply links extending to manufacturing and services sectors, helped by rapid technological progress. While youth unemployed reached a record high, older workers, aged above 65 years, were badly affected, showing the big fall in that category since records began in 2010. The government is faced with a challenge to ensure that that there are enough working-age people to provide a labour force needed for new investment and growth and to fund the pension system. The outflows of some of the best and brightest workers from Taiwan to China Mainland continue to grow.    2. 5  ----2014  -23419  3260  17347  2812  2017  -23517  3020  17218  3279  2020  -23559  2909  16846  3804  2023  -23552  2825  16378  4348  2026  -23497  2777  15810  4910  2029  -23382  2644  15286  5452  2032  -23192  2545  14745  5901  2035  -22917  2440  14179  6297  2038  -22554  2317  13650  6588  2041  -22111  2178  13057  6876  2044  -21601  2038  12387  7176  2047  -21031  1912  11682  7437  2050  -20414  1805  11070  7539  2053  -19766  1720  10551  7495  2056  -19097  1652  10000  7445  2061  -17952  1556  9040  Without immigrants from the other parts of the world, the labour force resources in Taiwan would not complete the gaps for the ageing. The demand for a highly educated workforce associated with Taiwan's growing knowledge economy has led to the increasing recruitment of skilled immigrants. To overcome Taiwan's technical talent shortage while supporting national policies, the government drafted the Act for the "Recruitment and Employment of Foreign Professionals" after a thorough examination of the difficulties and barriers encountered by foreign professionals seeking to work and live in Taiwan. This special law was passed on October 31, 2017, marking a major milestone in Taiwan's recruitment and retention efforts. Taiwan has an immigration system for recruiting immigrants based on skills and human capital using various programs under the economic immigration stream. A new law for knowledge migrants allowed highly skilled workers with job offers for a minimum of years to obtain a residence permit. The government brought about a remarkable shift in the Taiwan's migration policy towards more openness for labour migration. The Taiwan migration policy stemmed from the recognition of labour shortages in some sectors and as demographic concerns, and made a remarkable shift towards more openness based on economic needs assessment.
Taiwan has ranked 23rd among 63 countries in the IMD World Talent Report 2017. Despite its decent ranking, the report is an indication that Taiwan should be aware of its diminishing talent pool. Taiwan is placed at 23, the same ranking as last year after adjustments, but lags behind Hong Kong (12) and Singapore (13) while staying ahead of Malaysia (28) and Japan (31) among Asian countries. In the category of investment and development, Taiwan enterprises are noted to value employee training, but total public expenditure on education as well as Taiwan's pupil-teacher ratio in secondary education, are in inferior positions. Taiwan performs fairly well on effective personal income tax rate, but exhibits inconsistent performance on indicators like the cost-of-living index, brain drain and foreign highly-skilled personnel. The situation might become worse if Taiwanese professional talent continues to move out of the country, and if no foreign highly-skilled professionals arrive to balance their absence, which will further diminish an already drained talent pool. The economies that perform the best in the evaluation share similar aspects of attractiveness, including high investment on education systems from primary to tertiary levels, substantial opportunities for career advancement and a superior life quality.
Taiwan has largely benefited from the transition from an agricultural to an industrial to post-industrial economy. Table  12 shows the percentage share of disposable income by quintile group of households and income inequality indices in Taiwan, as measured by the Gini Index (the statistical measure of income equality). The Gini's concentration coefficien slighted increased from 0.321 in 1964 to 0.336 in 2016. It shows a stable proportion of the population practising high mobility across age groups. Table 13 shows the income distribution in selected countries (or local communities), such as Singapore, Hong Kong, Japan, China, France, Germany, Italy, UK and USA. Taiwan made efforts in the changes of disposable income occurred by current transfers between households and government. Taiwan wants to achieve the kind of mobility that maximizes the development and returns on human capital that are important to spurring economic growth. The achievement of educational systems that bridge the socioeconomic gap between origin and destination still has a very long way to go. Access to education plays a role in upward intergenerational social mobility. Lack of appropriate level of education to perform advanced technology-required jobs caused some workers to experience downward mobility by taking lower-paying jobs. Table 14 shows the mean disposable income of income recipients by educational attainment in Taiwan. In 2016, graduate school and above accounted for -3.08 of change (%) compared with 1.34 and -0.58, respectively, for university and "primary school, supplementary school and illiteracy services". Access to higher education may contribute to increase opportunities for upward social mobility. But in a difficult economic climate with increasing job insecurity, social mobility is declining in Taiwan. Employable graduates take years to become financially independent from their families, and they become frustrated and pessimistic about the future. Not only does society lose the talents, skills, and energy of a host of otherwise high-performing young people, the result is economically disastrous.   Taiwan has experienced a rise in income inequality over the past decades. The widening dispersion in income is shaped by the increasing concentration of income at the top end of the income distribution. The income of the bottom quintile of Taiwan stagnated during the 2010s while that of the top quintile surged. In 1970, for example, the highest 20% of households consumed 38.69 percent of disposable Income of households; by 2016, that share slightly increased to 40.36 percent. The ratio of income share of highest 20% to that of lowest 20% increased from 4.58 in 1970 to 6.08 in 2016. The share of income going to the top earners has risen sharply in Taiwan. Taiwan was not only producing more poor; the poor were also getting poorer relative to everyone else. We have seen three decades of stagnant real wages for most workers despite rapid productivity growth and greater inequality. These problems get worse in societies that experience an increase in inequality. Since the 1980s, technological change has been concentrated in capital goods utilized by skilled workers. The increase in productivity from computers, the internet, and other similar technologies is exclusively captured by high skilled workers. The difference between wages for high and low skilled workers has increased since the 1980s. Skill biased technological change (SBTC) seems to explain the rapid increase in wage inequality. Wage income inequality depends on the relative progress of education and technology.
The idea that education is the means to social mobility has been around for a long time. Taiwan has acted to assure greater intergenerational advancement for the disadvantaged through education. Between 1968 and 2016, Taiwan undertook significant school reform to provide equal educational opportunities to all students irrespective of place of residence or social background. Taiwan implemented a unified curriculum for all students until age 18. It also postponed the age at which students are tracked according to their abilities, from age 12 to 15. Taiwan has adjusted their programs to avoid the pitfalls apparent in early tracking. The age of choice of educational track is a prime target for reform to improve social mobility. Government makes education a key lever to provide opportunities to children of all social strata and to spur economic growth. It was thought that higher supply would increase equality of opportunities, and contribute to the creation of a more just system, with beneficial effects on social mobility. The efficiency of an education system should be measured in terms of the amount of social and occupational mobility. Schools work effectively when they enable students to achieve occupational and educational goals regardless of family background. Social mobility in increasingly knowledge-driven economies is powerfully linked to equitable access to higher education. Social mobility requires equally large-scale changes in the occupational structure, particularly if the education system is expanding. Policies aimed at enhancing social mobility, consider their links with future educational choices and equal opportunity for individuals.
A massive flow of foreign direct investment has triggered the process of technological change, and generated the need for skill upgrading of the workforce, especially of the youngest segments. Young people today must negotiate the new terrain of a life course that is unpredictable. The shift into postindustrial society has changed the nature of work, with the emergence of flexible and precarious employment in place of a career for life. As a result from the financial crisis, the worsened situation on the labor market reinforces the challenges to find meaningful education or labor. A stronger focus is now placed on the youth, education and better skill matching, as well as on labour market transitions. In the analysis of the current weaknesses of Taiwan labour market, Taiwan focuses on the need to improve employability (in particular of young people) and on the development of skills relevant for the labour market. Investments in human capital that enhance the development of competencies might well be perceived as investments in an area with relatively high social and economic returns. Such as the expansion of higher education and raising the age of compulsory participation in education or training, these measures were underpinned by the view that social problems such as unemployment, poverty and social inequality could be alleviated by transforming them into problems of educational access, achievement and quality. Attainment levels in higher education in Taiwan meets the projected growth in knowledge-intensive jobs, reinforce Taiwan's capacity to benefit from globalization. This puts schools in a very important position through their role in education of youth and in turn the future employment of young people. Table 15 illustrates the trends in the "International Mathematics and Science Study, end of 2015". Taiwan ranked third for both items of 8th Grade Mathematics and 8th Grade Science compared with fourth and sixth respectively, for 4th Grade Mathematics and for 4th Grade Science. Table  16 illustrates changes in the "Reading, Math and Science Scores of 15-Year-Olds on the PISA, end of 2015". Taiwan ranked 23 th for Reading compared with fourth and fourth respectively, for Mathematics and Science. The deterioration of students' scholastic abilities has been discussed intensively in the context of the deterioration of fundamental literacy skills. In an attempt to regain Taiwan status in reading skills in the world rankings, policies were developed to improve literacy skills. Many teachers encouraged their students to read more books and they developed learning materials to improve students' reading skills. PISA has been introduced to create a change in the education system, which is based on a different type of education system in the global society. PISA seems to play a part in bringing this educational globalization about, and students can aspire for a better international career when they get higher scores in PISA tests.

Discussion
The potential positive effects of capital flows include technology transfers, skill upgradation, and expanding its stock of human capital. The global economy is in the midst of change process affecting access to knowledge and technology. Globalization has defined new rules for competition of workers. It is essential to know how to attract, develop and retain intellectual capital. The local communities developed their distinctive social and political practices through their social diversity. Education must admit competent students from all sectors of the culturally diverse society. It deserves to highlight the place of education in multicultural policies, and to reflect upon the debates about the future of multiculturalism and social equality. For the ageing society, activation policies have become a matter of growing importance in response to the converging pressure of economic globalisation and the political modernisation of social welfare. Given the persistent high youth unemployment rates, a focus is now placed on the youth, education and better skill matching, as well as on labour market transitions. Thus, employment policies should be undergone reforms.
Rising demand for skilled labor is rooted in a permanent change in the structure of the global economy. Analysis of contemporary education policy reveals a concern with transforming education in the face of daunting challenges linked to globalization. Education is now seen as a vehicle of national competitiveness in which the economic policies have focused on the need for competitive human capital. The pressure resulting from expanding global competition has provoked educational reform measures that are focused on improving the quality of the labor force. The local communities need to think about closing the skills gap if they wish to continue to grow and develop employment opportunities. Education is a good investment for social mobility. To finish the job of increasing mobility, we must urge reform to improve educational mobility. We must lift up students who have the potential, whatever their parents' income, educational, or socioeconomic background, to realize the brightest possible future for our societies and economies. The government should target education as a way to improve social mobility and in turn bring more vitality to local economies.
High youth unemployment rates and a significant degree of instability in employment paths have become key characteristics of the societies. The inclusion of young people from disadvantaged backgrounds has become a priority on the agenda of the local. Rigid educational systems impose constraints on individual decisions of investment in human capital, and may affect negatively the transition from education to work. The coming decades are likely to be challenging times for researchers to comprehend the transformations occurring around and in relation to youth. Education is held to be desirable even beyond its role in fostering economic growth, further social integration and mobility, increasing productivity and promoting social justice. The government should make education a key lever to provide opportunities to children of all social strata and to spur economic growth. But the use of education to spur mobility is not straightforward and remains complicated by a number of social, financial, and political factors. Inequality remains a major challenge to development and the elimination of poverty.

Conclusions
This geo-political shift has been configured in terms of attenuating flows of capital and cross-border movement. Labor market mobility is likely to contribute to the development and accumulation of skills needed for innovations. In an intensifying global competition the talent, the labour markets should continue to absorb the increased supply of higher-educated workers. The importance of investments in human capital in offsetting the negative socioeconomic consequences of population ageing shoule be underlined. Due to the progressive ageing of the society and the consequent decrease in economically active population, the local communities shall particularly focus on the improvement of the quality of its education and vocational training system as well as on tackling the problems associated with the growing number of young people excluded not only from the labour market but from the integration into the society at large. Policy makers need to realize that to overcome the possible future consequences of ageing, and appropriate measures should be implemented soon.
Openness to new ideas, collaborations, and the development of absorptive capacities are the cornerstones of a successful innovation strategy. Higher education policy needs to be coordinated with a wider set of innovation policies. A principal task for higher education is to contribute to collective entrepreneurship, to general skills supporting interaction with others resulting in innovation. Public policies should be guided towards the creation of innovation flows and schools should teach young people how to be creative and resourceful, as these qualities are indispensable to promote entrepreneurialism. Educational strategies in the form of investments in human capital are increasingly regarded as the primary means to tackle the challenges of demographic and technological change but also the risk of social disruption. The government should present the solutions to the escalating demands of globalization and growing levels of economic competition.