discouraged worker

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A person who drops out of the labour market after a period of unemployment. This follows after they have been unable to get work of a type they regard as suitable for their qualifications, or in some cases to get any work at all. Discouragement may result from recognition that disuse is causing their skills to deteriorate, from fear that employers regard prolonged unemployment as being in itself a bad signal, or from finding unemployment preferable to employment.

Subjects: Economics.

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