So much to add; so few links at hand.
Mr.P's "firing" discovery: Yes, the people in the game world have a lot of inertia. Unless they are really very unhappy with their current job, they are disinclined to quit. Unless they are actually unemployed, it seems, they do not look at vacant jobs.
Student is just another "job" with a couple of additional spins connected with it! Since people rarely quit unless individually they consider working conditions horrible (and the player is guessing about that because he doesn't have a full list), firing them forces the issue. Some will prefer to take the Student job rather than return to their previous job level \ social class. Really, to maximize the tool, the player could look for the indivduals with the least job satisfaction.
The players developed a simplistic formula to encourage the NPCs to take the Student job. It was called "going to school." In the game world it was no such thing -- it was just taking a different
JOB with conditions that better fit the job selection algorithm.
Education Level Equals Social Class. I opine that this is an unstated design feature of the game. I suggest that thinking about it that way makes it much easier to understand the education system.
Faction Results of School's Options. The two options related to military and religion are obivious = you need to use them for army and church employees. The default "General Education" option is a cruel trick of the developers. It is not "general" at all; it is
Intellectual with a sub-set for Environmentalist -- and they don't like the army or the church. Yes, another of the sly "got-ya-s" paradoxes of the game design.
There's no education option to fit the Communists or the Capitalists. That's another "fun" paradox. It means that the player has to develop good relations with more than one faction so either the Capitalists or the Communists can balance the social classes needed to fill all the needed jobs. The player who wishes to channel an insane tyrant of unconstrained personal power, e.g. the legend of Caligula, will find the game nearly impossible at any serious level of difficulty -- especially economic.