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The Role of Discouragement in Shaping Long-Term Unemployment

Work & Education India

Photo Credit: Luisa Cefala

Policy Context: This study explores the determinants of labor supply choices among urban casual laborers in India, and how those are affected by behavioral biases such as attention and motivated cognition. In particular, researchers are interested in examining how the nature of these jobs — e.g. lack of contracts, fluctuation of labor demand — might exacerbate such behavioral biases.


Study Design: With funding from CEGA, the research team will travel to India to explore the possibility of a study on the mechanisms through which long-term unemployment has negative effects on labor outcomes.  They will conduct focus groups and preliminary scoping with job seekers to design adequate tests for their hypotheses and effective interventions.


Results and Policy Lessons: Results forthcoming.

  • Institute for Financial Management and Research (IFMR)
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