For most of the young, working as a salaried employee in the formal sector remains a distant dream, especially in countries where the public sector has been shedding labour over the last two decades. Instead, those young people who cannot afford unemployment and a prolonged job search are confined to the informal sector and low quality jobs. Once they are stuck in the informal sector, a move into the formal sector other than through self-employment becomes difficult. In all three countries more than 80% of those in self-employment or unemployment were still in that category two years later (2004-06). Unfortunately, only very few studies exist that follow individuals over time to give a better understanding of the transition dynamics between labour market segments.