Abstract
Education has long played an important role in social policy as a means for strengthening labour market integration and increasing social mobility. The shift towards a knowledge economy has placed education policy even more centrally in efforts to provide the institutional preconditions for making economic efficiency compatible with social inclusion. To provide conceptual and theoretical context to the special issue, this paper first explores the key tension in the role of education in modern economies between serving concerns for efficiency and inclusion. Second, it argues that it remains possible for education policy to balance between efficiency and inclusion, but that the capacity of advanced economies to do so is politically mediated. Finally, the paper reviews the four main arenas in which such mediation processes take place—the parliamentary arena, the corporatist arena, the state, and public opinion—and how the contributions to the special issue study these.