This paper outlines the rationale, goals, planning, methodology, problems, and future direction of the research program involving studies concerning education and employment carried out by the International Institute for Educational Planning. The project was designed to relate the development of higher education in various countries (both developing and developed) to the changing needs of the labor market in order to improve educational planning in those countries and reduce the possibility of mismatch between the training offered and the skills in demand. The project goals--which include socioeconomic analyses, comparison of employers' needs and graduates' skills, and better planning for higher education--are realized both in case studies in various countries and in the analysis of specific issues. The research teams in each country chose from three methods: longitudial studies of students, graduates, and employers (the three categories sampled); analyses of census data; and analyses of representative populations. Major variables include economic capacities of nations, degrees of emphasis on education, inventories of training needs, education costs, and such factors as job mobility and attitudes of students and employers. Sample populations were surveyed through questionnaires and their answers correlated with national statistics. Discussion of problems and limitations of methods and samples resulted in 1979 in a refocusing on educational issues as well as on wider coverage of schools (technical-vocational institutions as well as universities) and on an emphasis on followup studies. (JW)