Binomial logit models are commonly used in the analysis of the situation of respondents on the labour market. Consequently, in most cases researchers consider two states: of being unemployed and employed or economically inactive and active. This paper focuses on the situation of young people...

Using data from Sierra Leone, I explore the role of cognitive ability in sorting across sectors and the importance of perceptions in the employment decision-making process. Crucial to the analysis is the introduction of the aid-industry/development sector as a 'third sector', which is shown to...