Households' expectations about future economic conditions can play an important role in their job search behavior. Using survey data this paper finds that workers’ expectations for the economy have significant impact on their search effort. Pessimistic workers who expect the future labor market to do worse, significantly increase their current search intensity, while optimistic workers report a decrease. The paper evaluates the effect of an expansionary corporate tax cut policy by introducing workers with heterogeneous beliefs to a stylized search model with endogenous search effort. The presence of heterogeneous beliefs dampens the effect of such a policy on the unemployment rate.