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From Economic Productivity to Productive Well-Being: the Role of Life Satisfaction and Adjusted Net Savings

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  • Charles-Henri DiMaria
  • Chiara Peroni
  • Francesco Sarracino

Abstract

Productivity - a driver of economic growth - is not necessarily compatible with societal well-being, nor environmental sustainability. Various authors contributed frameworks to incorporate environmental issues in the measurement of productivity, or studied the role of subjective well-being for productivity. However, studies proposing ways to account for both subjective well-being and sustainability in productivity measurement are scarce. We examine whether and to what extent it is possible to include subjective well-being and sustainability measures among the inputs and/or outputs of a traditional productivity framework. Specifically, we adopt a data-driven approach to test whether subjective wellbeing and adjusted net savings meaningfully contribute to computing a productivity-like indicator. We apply Data Envelopment Analysis (DEA) to European data from 2005 to 2018. We find that including subjective well-being among the inputs and the outputs of production meaningfully contributes to the measurement of total factor productivity.

Suggested Citation

  • Charles-Henri DiMaria & Chiara Peroni & Francesco Sarracino, 2022. "From Economic Productivity to Productive Well-Being: the Role of Life Satisfaction and Adjusted Net Savings," International Productivity Monitor, Centre for the Study of Living Standards, vol. 43, pages 62-80, Fall.
    • Handle: RePEc:sls:ipmsls:v:43:y:2022:5
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    Cited by:

    1. Francesco Sarracino & Kelsey J. OConnor, 2022. "A Measure of Well-being Efficiency Based on the World Happiness Report," International Productivity Monitor, Centre for the Study of Living Standards, vol. 43, pages 10-40, Fall.

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    Keywords

    Productivity; Well-Being;

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