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Navigating behavioral biases in job search: overview and digital solutions

In: Handbook on Labour Markets in Transition

Author

Listed:
  • Michèle Belot
  • Philipp Kircher
  • Paul Muller

Abstract

This chapter reviews common behavioral biases in job search behavior and reviews recent literature that studies their consequences for job search effectiveness. We focus on time preferences (present bias), biased beliefs about labour market prospects, and psychological barriers such as discouragement. Next we describe how recent technological advances have opened up opportunities to overcome these biases and enhance job search effectiveness. Online platforms can offer low-cost and personalized support in the form of goal-setting assistance, improved information provision about institutional features, or tailored job search recommendations. We review the recent empirical evidence from field experiments with such tools and link the diverse results to a discussion of the challenges in designing effective recommendation systems. These include ensuring accurate information about current labour demand, the risk of increasing congestion, and offering recommendations to those sub-populations that benefit most.

Suggested Citation

  • Michèle Belot & Philipp Kircher & Paul Muller, 2024. "Navigating behavioral biases in job search: overview and digital solutions," Chapters, in: Stéphane Carcillo & Stefano Scarpetta (ed.), Handbook on Labour Markets in Transition, chapter 8, pages 163-175, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19758_8
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    File URL: https://www.elgaronline.com/doi/10.4337/9781839106958.00014
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