Shrinkage refers to a decrease in size, amount or value. It can be used in various contexts such as economics, psychology and manufacturing processes. In economics, shrinkage is the loss of inventory due to factors like damage, spoilage, shoplifting or employee theft. In psychology, it refers to the process by which an individual's consciousness decreases in size, leading to a sense of detachment from reality and self-awareness. In manufacturing processes, shrinkage is the reduction in material dimensions during the production process due to factors like warping or contraction.