When informal is normal… On the role of credentials and contacts for the job entry in Serbia

The paper focuses on the roles of human capital and social resources in structuring young people's entries into either the formal or the informal labour market in the Serbian transformation society. Results show that informal labour market in Serbia follows the structure of the secondary labour market and signals vulnerability on part of youths employed there. Education dropouts are largely channelled to the informal sector, whereas favourably educated Serbian graduates are less attracted to it. Job search via social networks facilitates entry to unregistered employment, but slows down entry to registered employment for job seekers. Whereas stratification of labour market entry by education largely follows patterns of primary and secondary labour market attainment in any industrialized society, the effects of contacts might exhibit traces of inefficiencies peculiar to the transformation countries. Analyses are conducted on the basis of the Serbian school-leaver survey (2006) applying event history modelling and binomial regression analysis.