Insights From Behavioral Economics for Improving Policies That Aim To Mitigate the Consequences of Unemployment in Rwanda

Abstract

Unemployment has far-reaching consequences on the people affected by it and despite government interventions, unemployment continues to impact Rwandans significantly. This research paper dives into specific government policies implemented in Rwanda to reduce unemployment. By utilizing the lens of behavioral economics, it provides specific suggestions that policymakers could consider in order to refine current policies. In particular, this essay documents the impact of framing, loss aversion, status quo, and anchoring biases on unemployment in Rwanda. Finally, this paper stresses the need to acknowledge and mitigate these biases through the implementation of nudges to empower individuals to make better, more efficient, and more informed decisions.