Discussion Papers no. 906

Structural analysis of discouraged worker behavior

Discouraged workers are those who have given up search due to (perceived) low chances of obtaining work. This paper develops a stochastic structural econometric framework for analyzing discouraged worker behavior based on the theory of job search and the notion of probabilistic rationality and risky choice.

Subsequently, we conduct an empirical analysis of immigrant women from non-Western countries and for women born in Norway by using micro data on labor force participation and unemployment. We find that the discouraged worker effect and modified unemployment rate are particularily high among immigrant women with low wage rates and many children.  

About the publication


Structural analysis of discouraged worker behavior


John K. Dagsvik, Tom Kornstad and Terje Skjerpen

Series and number

Discussion Papers no. 906


Statistisk sentralbyrå


Discussion Papers



Number of pages


About Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.