Labor force participation and the discouraged worker effect

摘要: This article analyzes labor force participation with particular reference to the discouraged worker effect. Discouraged workers are those who will search for work when market is tight but do not slack because they consider their chances of finding a suitable job too low. The theoretical point departure model where evaluates expected utility searching and decides participate in if exceeds working. From this framework, we derive an empirical probability that be out force, unemployed, or employed. estimated on sample married cohabitating women Norway covering period from 1988 2008. results show effect substantial. On average, about one-third discouraged, according our analysis.