This report describes the background and links among education, training, labor market, economy, and society. Part 1 deals with the statutory, institutional, and political background to vocational education and training (VET), steering of VET systems, funding, and performance of VET systems and the European context. Part 2 discusses research on the socioeconomic frame of VET; developments and changes to the supply and demand sides; macro- and microeconomic costs and benefits of VET; and research on increasing employment by creating new jobs, and future trends in work and skills. Part 3 analyzes individual education and training decisions and implications for vocational guidance; correlation of structural change with apprenticeship training; transition from VET to the labor market; CVT's objectives and actual situation; and problems of disadvantaged groups in training and work. Part 4 discusses proposals on how to proceed with curricular research, role of key qualifications, new learning formats and venues using new technologies, and nonformal learning. Part 5 focuses on principles, methods, and limitations of comparative VET research; European mobility; and recognition and transparency of skills and qualifications. Part 6 offers general conclusions. Appendixes contain 895 references and include: information on VET research institutions, selected networks for research cooperation, sources for descriptions of VET systems in Europe, European Union programs related to VET, and international statistics and classifications. (YLB)