Abstract
The high rate of youth unemployment is an issue that is largely present in developing countries, such as Serbia. The results of the research will provide a major contribution whether education has an impact on the labour market among young people in Serbia. Decision tree was performed to identify impact constructs. In order to define public policies, an insight is provided into the characteristics of young people that largely contribute to the probability of being employed. The results showed that education has an impact on youth unemployment. Results of the research will be useful for decision makers in the implementation of a strategic model of the labour market. Theoretical and practical implications are discussed in the paper.
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