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Happiness and Productivity

Author

Listed:
  • Oswald, Andrew J.

    (Department of Economics, University of Warwick)

  • Proto, Eugenio

    (Department of Economics, University of Warwick)

  • Sgroi, Daniel

    (Department of Economics, University of Warwick)

Abstract
Little is known by economists about how emotions affect productivity. To make persuasive progress, some way has to be found to assign people exogenously to different feelings. We design a randomized trial. In it, some subjects have their happiness levels increased, while others in a control group do not. We show that a rise in happiness leads to greater productivity in a paid piece-rate task. The effect is large; it can be replicated; it is not a reciprocity effect; and it is found equally among males and females. We discuss the implications for economics.

Suggested Citation

  • Oswald, Andrew J. & Proto, Eugenio & Sgroi, Daniel, 2008. "Happiness and Productivity," The Warwick Economics Research Paper Series (TWERPS) 882, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:882
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    References listed on IDEAS

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    More about this item

    Keywords

    Labor productivity ; emotions ; well-being ; happiness ; positive affect ; experimental economics;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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