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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 for the Study of Labor (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. 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.
    3. Roland Bénabou & Jean Tirole, 2002. "Self-Confidence and Personal Motivation," The Quarterly Journal of Economics, Oxford University Press, vol. 117(3), pages 871-915.
    4. Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough or Don't Pay at All," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 791-810.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    productivity; happiness; well-being; experiment;

    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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