Master thesis : "Nudging job seekers : a case study at VDAB."

Abstract

How can behavior be influenced so that people exhibit the behavior prescribed by the policy? After 2017, when Richard H. Thaler won the Nobel Prize in economics for his contribution to behavioral economics, the interest of governmental organizations grew to find out how nudging can improve policy. This thesis aims to understand how nudging can encourage a job seeker's intention to be present at an interview. It would mean that the jobseeker can be effectively guided to further guidance at VDAB, training, or employment and reduces his chance of a sanction. For VDAB, the Public Employment Service of Flanders, this would mean that it could work more efficiently, customers can be guided more sustainably, and the possibility that the customer will work increases. In this study, a quantitative quasi-experimental survey was set up. In the VDAB appointment bundle, containing invitations for appointments and assignments, two nudges were tested in line with the formulated hypothesis. The first nudge capitalized on loss aversion by explicitly referring to the consequences of not showing up. The second nudge adjusted to the physical environment by explicitly highlighting the appointment time and person to call in case of absence. Based on four appointment bundles, a total of 121 jobseekers were surveyed. A quarter of the jobseekers received an appointment bundle without nudges. The two other quarters received a bundle with one of the two nudges. The last group received an example of an appointment bundle with both nudges. Comparing the outcomes of the four appointment bundles, the intention of being present for all four groups of job seekers is relatively large, regardless of whether nudges were applied. In addition, the jobseekers estimate the chance of informing VDAB is rather large in case of absence. In case of non-compliance, job seekers consider the chance relatively high that a sanction will follow. However, no significant difference was found between these intentions based on the various bundles of agreements. The tested nudge often came out more clearly in the motivation why job seekers were assigned a particular score. There seems to be an influence on consciousness, but it could not be demonstrated that the nudges affected intentional behavior. The most prominent limitation of this study is that intentions were questioned, and the study did not test actual behavior. In addition, a small sample size of active job seekers was reached where socially desirable answers prevailed. Nevertheless, research into nudging does not always provide evidence. Yet, it can be successful. Goos and Rademakers (2023) proved that nudges can be successful in the communication of VDAB to job seekers. Their tested nudges, information simplification and reminders, proved evidence. This research clarified that if a job seeker is motivated, or at least pretends to be, a nudge pointing out a loss effect or explicitly referring to how to proceed in case of absence has no added value on intentional behavior. Building on the insight of this study and the knowledge of the study of Goos and Rademakers (2023), further research should assess which nudges to test for job seekers, and effective behavior must be measurable so that socially desirable responses are excluded. Finally, there is a clear added value in reaching passive job seekers in subsequent research so that it can be investigated which nudges are effective for them.