Over a relatively short period of time, Hungary has undergone substantial structural changes concerning its education system, labour market and welfare institutions. Since the regime transformation, the curriculum of the country's education institutions has become more general and academically oriented. On the one hand, this could make the school-to-work transition more flexible, on the other hand, entrants to the labour market could face an increasing risk of a qualification/occupational mismatch. One of the principal changes in the labour market during the transition was a sizeable increase in the return to skills and a marked decrease in return to employment experience. The transition to a market economy therefore resulted in strong discrimination against older, unskilled workers who lost employment disproportionately in comparison to their well-trained, younger counterparts.
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