This article analyses the mechanisms of a state-organized educational system as it functions between households and the labour market, regulating the passage of age cohorts from the home via school to the labour market. One question is what outcomes the educational system actually produces and what mechanisms are at work in the distribution of educational advantage. In terms of disadvantage, the paper assesses solutions for overcoming the skill gap and entrapment problems of post-industrial society by means of education. In addition to describing how the educational system worked in the conditions of a mature Nordic welfare state and an industrial society based on paid work, feasible ways of reorganizing education in the changing work conditions of an increasingly crisis-ridden post-industrial society are also sought. © 2002 Taylor & Francis Group, LLC.
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