Setting goals for keystone habits improves labor market prospects and life satisfaction for unemployed youth: Experimental evidence from Norway

Abstract

We report the findings from a light-touch goal-setting intervention aimed at improving the job prospects of unemployed youth in Norway. Using a randomized control trial, we find that the intervention, which invited participants to set goals for three keystone habits—sleep, exercise, and substance use—changed the goal-directed habits and, more importantly, increased employment and reduced dependence on unemployment benefits. In addition, the intervention improved general life satisfaction and strengthened the locus of control of participants. These findings speak directly to the importance of setting goals for daily habits for a quick transition back to employment and highlight the need for a broad perspective in the design of employment services. Given the low-cost and low-threshold nature of the intervention, it should be easily applicable as a complement to standard labor market programs.