The Causes and Effects of Discouragement in the Working-Age Population

Abstract

ABSTRACT Similar to unemployment, the indicator of discouragement provides a specific measurement of a certain segment of the working-age population who are not employed and do not receive a wage. Unlike unemployment, discouragement accounts for those people who are not searching for paying jobs due to a variety of causes such as disillusionment with their job prospects, low education, and family obligations (e.g., child care). This article considers the causes and consequences of discouragement in Russia and its relation to both individual people and society as a whole. After identifying several causes of discouragement (e.g., improved quality of life, poor work ethic, and income inequality) and considering its negative impact on society (e.g., reduced economic development, lower quality of life), this article proposes that discouragement can be reduced by raising wages, improving working conditions, and developing special work and education programs for young people.