Advances in Economics, Management and Political Sciences
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Proceedings of the 2023 International Conference on Management Research and Economic Development
Series Vol. 25 , 13 September 2023
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Labour Market Analysis from a Behavioral Economics Perspective: From the Perspective of Unemployment Insurance and Employment Discrimination
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Abstract
This article analyzes labor market problems through the lens of behavioral economics. This article seeks to identitys methods in which behavioral economics can provide policy recommendations for addressing issues related to unemployment and employment. While traditional economics fails to explain how unemployment insurance discourages job search and leads to long-term unemployment, behavioral economics finds that cognitive biases like loss aversion and present bias prolong unemployment. It suggests that policies must be designed by considering these cognitive biases to increase the motivation of the unemployed to accept work. One policy that can supplement unemployment insurance is wage-loss insurance. Wage-loss insurance is a short or long-term monetary subsidy when the wages in the new job are lower than in the old job. This paper uses qualitative analysis and a literature review to gather insights into labor market problems and the role of behavioral economics in addressing them.
Keywords
behaviroul economics, labour markets, unemployment insurances, cognitive bias, discrimination
References
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Data Availability
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- Volume Title
- Proceedings of the 2023 International Conference on Management Research and Economic Development
- ISBN (Print)
- 978-1-915371-93-5
- ISBN (Online)
- 978-1-915371-94-2
- Published Date
- 13 September 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/25/20230469
- Copyright
- 13 September 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited