This final paper shows the impact of behavioral economics and its theories on the labor market. The aim of this research is to present a behavioral view of the actual behavior and decisions of labor market participants and to show the reasons for their deviation from rationality. The first chapter introduces the subject of the research and presents the goal of the work. In the second chapter, the theoretical concept of behavioral economics, the way it was created, and the positions it advocates were presented. This chapter also touched upon its historical development and the points of view and differences by which behavioral economics deviates from traditional economics. After getting acquainted with general information about behavioral economics, it focused on the labor market. Therefore, in the third chapter, the theoretical approaches advocated by behavioral economics are presented. Then the theory of fairness, the theory of monetary illusion and the prospect theory are explained separately. Each theory explained in its own way, the deviation of human behavior and its influence on decision-making that are not entirely rational. The impact of these theoretical approaches on the labor market is presented in the fourth chapter. In accordance with the aforementioned theoretical approaches, real situations in which the decisions of the participants deviate from rationality are presented and explained.