AbstractDespite rhetorical agreement amongst all major political‐economic actors around the importance of education policy in the knowledge economy, the reform of education systems remains a complex political endeavour. The article explores the politics of education policy by focussing on its multi‐dimensionality. It argues that education systems simultaneously perform three functions: they distribute educational opportunities; they provide skills to the labour market; and they are a source of public sector employment. It is argued that policy change in one dimension is likely to trigger spill‐over effects onto the others, giving rise to complex political dynamics at the intersection of the parliamentary and corporatist arenas. It is in this context that centre‐left and centre‐right parties (try to) pursue distributional goals whilst being pressured by different interest groups. The theoretical argument is explored empirically through a detailed reconstruction of over a decade of intense reform activity in the Italian upper‐secondary education system.