Happiness and Productivity

Andrew Oswald, Eugenio Proto and Daniel Sgroi

Journal of Labor Economics, 2015, vol. 33, issue 4, 789 - 822

Abstract: Some firms say they care about the well-being and "happiness" of their employees. But are such claims hype or scientific good sense? We provide evidence, for a classic piece rate setting, that happiness makes people more productive. In three different styles of experiment, randomly selected individuals are made happier. The treated individuals have approximately 12% greater productivity. A fourth experiment studies major real-world shocks (bereavement and family illness). Lower happiness is systematically associated with lower productivity. These different forms of evidence, with complementary strengths and weaknesses, are consistent with the existence of a causal link between human well-being and human performance.

Date: 2015
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Citations: View citations in EconPapers (283)

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Related works:
Working Paper: Happiness and Productivity (2013)
Working Paper: Happiness and Productivity (2009)
Working Paper: Happiness and Productivity (2008)
Working Paper: Happiness and Productivity (2008)
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