Policies Against Unemployment Through Behavioral Economics

Unemployment is an issue that continues to persist around the world. It has many negative consequences on individual, such as lower self-esteem, and this paper looks at how these effects could be mitigated, by ensuring reemployment of individuals, through a behavioral economics approach. Understanding examining heuristics anchoring effect, status quo bias, framing, allows us shape new policies amend existing ones mitigate effects. This happens nudge both policymakers, recently unemployed individuals make decisions would benefit them in situations regarding unemployment.