This article provides a policy review of behavioral science insights into relevant biases that may hinder job search activities, as well behavioral interventions to smooth the transition back to the labor market. Labor market policies that build on the assumption that individuals behave rationally may overlook the systematic biases that can occur during job search, limiting their effectiveness. Understanding behavioral factors within the job search process can give policymakers a new toolkit for policy design. Behaviorally-informed policies can potentially provide outcomes closer to individuals’ true preferences, without high costs or reductions in welfare. More real-world evidence is needed to inform the development of effective behavioral job search interventions.
|Bidragets oversatte titel||Job search with bounded rationality: Behavioral insights and interventions|
|Tidsskrift||Oekonomi og Politik|
|Status||Udgivet - 2017|