Behavioral Economics for Leaders

CHAPTER 6When Finding a New Job, Rigidly Structuring Your Day Is a Power Move

It's not easy to find new work. In some countries, behavioral economists advise public employment agencies to help unemployed people to find work again. How does it work?

David Cameron, the former British prime minister, will probably go down in history as the man who initiated the Brexit referendum. But one of his projects was an experiment in behavioral economics—the installation of a so‐called nudging unit in his government. The unit consisted of a group of economists and psychologists known as the Behavioral Insights Team, which dealt with the question of how government policies can be implemented in a more efficient, resource‐saving, and citizen‐friendly way without having to amend laws. The idea was to use nudging—giving people a gentle push in the right direction so they change their behavior.

The most spectacular success achieved by the Nudging Unit was in tax administration. Simple public announcements, for instance, let everyone know that nine out of ten citizens pay their tax bills on time. This improved most people's feeling about paying their taxes, didn't cost much, and allowed the Treasury easily to collect tens of millions of pounds more. In addition to tax administration, the Nudging Unit was concerned with finding jobs for the unemployed.

In several districts, the Nudging Unit helped British employment services counsel job seekers differently. In contrast to traditional training ...