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Are happy workers more productive?

Author

Listed:
  • Eugenio Proto

    (University of Warwick, UK, and IZA, Germany)

Abstract
Recently, large companies like Google have made substantial investments in the well-being of their workers. While evidence shows that better performing companies have happier employees, there has been much less research on whether happy employees contribute to better company performance. Finding causal relations between employee well-being and company performance is important for firms to justify spending corporate resources to provide a happier work environment for their employees. While correlational and laboratory studies do find a positive relationship, the evidence remains sparse.

Suggested Citation

  • Eugenio Proto, 2016. "Are happy workers more productive?," IZA World of Labor, Institute of Labor Economics (IZA), pages 315-315, November.
    • Handle: RePEc:iza:izawol:journl:y:2016:n:315
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    References listed on IDEAS

    as
    1. Petri Böckerman & Pekka Ilmakunnas, 2012. "The Job Satisfaction-Productivity Nexus: A Study Using Matched Survey and Register Data," ILR Review, Cornell University, ILR School, vol. 65(2), pages 244-262, April.
    2. De Neve, Jan-Emmanuel & Oswald, Andrew J., 2012. "Estimating the influence of life satisfaction and positive affect on later income using sibling fixed-effects," LSE Research Online Documents on Economics 51523, London School of Economics and Political Science, LSE Library.
    3. Roland Bénabou & Jean Tirole, 2005. "Self-Confidence and Personal Motivation," International Economic Association Series, in: Bina Agarwal & Alessandro Vercelli (ed.), Psychology, Rationality and Economic Behaviour, chapter 2, pages 19-57, Palgrave Macmillan.
    4. Andrew J. Oswald & Eugenio Proto & Daniel Sgroi, 2015. "Happiness and Productivity," Journal of Labor Economics, University of Chicago Press, vol. 33(4), pages 789-822.
    5. Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough or Don't Pay at All," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 791-810.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Eugenio Proto & Climent Quintana-Domeque, 2020. "COVID-19 and Mental Health Deterioration among BAME groups in the UK," Working Papers 2020_16, Business School - Economics, University of Glasgow.
    2. Krause-Pilatus, Annabelle & Rinne, Ulf & Schneider, Hilmar, 2019. "Arbeitszufriedenheit in der modernen Arbeitswelt," IZA Standpunkte 94, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    productivity; happiness; well-being; experiment;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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