User:Momokahoriguchi/Discouraged worker

Lead
One of the reasons why people become discouraged workers is discrimination. A research found that minorities more likely to become discouraged workers due to discrimination at a workplace. The studies of discouraged workers is undertaken, as it is seen as "hidden unemployment". However, it is related to social problem like minority discrimination and diverse community. The minorities, such as African American, ethnic and racial minorities in Europe, and older workers, tend to become discouraged workers more than others. Discrimination lead workers to be discouraged workers because discrimination caused feelings of helplessness and uncontrollability and decreases a level of self-efficacy.

The behavioural patterns for labor force participation are different across age-sex groups in the business cycle and depending on the unemployment rate. The young workers are most dependent on the business cycle regarding the decision of weather to participate in labor force. There is the liner relationship only among the prime-age female between the added workers and the discouraged workers. Generally, the discouraged worker effect gets stronger when the unemployment rate exceed the certain level. The discouraged worker effects appear more for older workers during the exception phase, which is the phase when the unemployment rates of workers departed.

India
The discouraged worker effect in India is divided into two concept, unexplained gender wage gap and degree of underemployment. The discouraged worker effects are related to the recession in business cycle, mainly affecting women or the secondary income earners in household. Gender discrimination in the labor market, the lack of job opportunity, and the wage gap discourage women to enter the labor force in India.

In Kerala, India, a study concluded it worsened the female-to-male wage ratio between 2004 and 2012, which generated discouraged women workers. The discouraged worker effects of the wage gap was 2.6% in 2011/12 in India, which is the ratio as 1% increase in the wage gap. This ratio for India exceed the ratio for the Republic of Korea and Japan.

Gender inequality is historically higher in the southern states than the northern states. For example, the participation rate was 21% for the all-India in 2011/12, whereas 25% in Andhra Pradesh, which is in south of India, and 14% in Uttar Pradesh, which is in north of India. The rate for Kerala was 42%, which is much higher than the national average, while the rate for Uttarakhand was 21% in 2011/12. The participation rate of labor force for women is higher in western and southern states than the central India. The participation rate is positively related to the education level. As the education level reached to graduate, the probability of labor force entry increase by 5.7% in 2011/12.