Intervention(s)
Searching for a job is a dynamic and self-regulatory process in which effort and motivation are key, but it can be psychologically taxing. Unemployed individuals are more than twice as likely to experience symptoms of psychological distress as their employed peers, and the act of searching itself is associated with negative affect. Beyond the immediate welfare losses, psychological distress could directly undermine the job search process. An extensive literature in clinical psychology has linked distress with pertinent cognitive mechanisms -- including reduced motivation, overly pessimistic (self-)assessments, a tendency to overweight negative signals, and reduced cognitive capacity and endurance -- which may contribute to generating self-reinforcing cycles of unemployment and worsened well-being. This issue is particularly pronounced in low- and middle-income countries, where many young people experience extended periods of unemployment while searching for stable jobs with prospects for career growth. Youth and recent graduates are especially vulnerable; as they are typically overoptimistic about their labour market prospects but are then quickly faced with repeated rejection, which can give way to frustration and discouragement and ultimately depress labour market outcomes in the long-run.
In this project, we experimentally evaluate the impact of a psychological support intervention for young jobseekers in Addis Ababa, Ethiopia -- a context characterised by high youth unemployment, limited social safety nets, and high rates of psychological distress. Our intervention, delivered over five weekly in-person sessions, is based on principles of cognitive behavioural therapy and aims to improve young unemployed jobseekers’ psychological well-being and resilience during the job search process. The curriculum includes techniques to manage stress and anxiety, encourage reflection about job search strategies, develop strategies to break down and address practical problems, motivate engagement in meaningful activities and promote initiative-taking, and strengthen coping strategies for dealing with setbacks. We randomly assign jobseekers to either a group or an individual version of the program, both of which covers the exact same curriculum but where group discussions are replaced with individual reflection. This design allows us to estimate the overall effect of providing psychological support during job search, as well as any additional marginal impacts that may arise by leveraging group dynamics – including through exchanging information about the labour market, sharing personal experiences, and receiving encouragement from peers.