IMPROVING JOB SEEKERS' DECISION-MAKING MECHANISMS IN THE LABOR MARKET BASED ON BEHAVIORAL ECONOMICS

ABSTRACT. This article investigates the role of behavioral economics in improving job seekers' decision-making mechanisms in the labor market. Traditional labor market theories assume that individuals make employment decisions by rationally comparing expected wages, working conditions, employment opportunities, and job-search costs. However, actual labor market behavior is also influenced by psychological biases, risk preferences, social expectations, and information asymmetry. The objective of this study is to identify the principal behavioral determinants affecting employment decisions and propose an institutional framework for improving job-search efficiency through behavioral interventions and recruitment agencies. The research applies theoretical analysis, comparative assessment, systematic classification, and conceptual modeling. Particular attention is paid to loss aversion, present bias, reference-dependent preferences, overconfidence, and trust in labor market intermediaries. The article argues that integrating behavioral insights into employment services may improve information transparency, support realistic wage expectations, and facilitate better matching between job seekers and employers. A conceptual mechanism connecting behavioral factors, recruitment services, and employment outcomes is proposed. The study concludes that behavioral approaches can complement traditional labor market policies and contribute to the development of more inclusive and efficient employment institutions.