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The paper analyses the labour market situation among youth with low or medium levels of formal education. The analyses focus on studying the effects of level of competence, grades and immigrant background. Which factors contribute to labour market success among this group of youth? And which factors may increase the risk of not getting into the labour market? The findings indicate that both achieved characteristics, such as grades and level of competence ('merits'), and ascribed characteristics, such as ethnic background, are important for their labour market opportunities. Among those with the lowest competence level, the ethnic Norwegians do not fare the best. Else, immigrants with non-Western background have a higher risk of unemployment and a lower rate of employment than the ethnic Norwegians, but second-generation immigrants have a better situation than first-generation immigrants.