Opening the “black box” of the labour market in Macedonia: Youth unemployment
This paper estimates the determinants of youth unemployment in Macedonian labour market. The motivation for it comes from high and persistent youth unemployment in the country in the past two decades, despites many active labour policies directed towards that segment of the labour market. The paper presents the two step conditional mixed processes model (CMP) estimation on binary and ordinal data obtained from the school to work transition survey (SWTS) by ILO, aimed towards obtaining relevant estimates. As social-economic issues cannot be always explained by pure quantitative estimation, the paper extensively explores the possible determinants of unemployment by conducting semi-structured interviews and focus groups. The results suggest that main determinants of youth unemployment in Macedonia are age, level of education, region of living, gender and household financial situation.