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Happiness and Productivity

Author

Listed:
  • Oswald, Andrew J.
  • Proto, Eugenio
  • Sgroi, Daniel

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," Economic Research Papers 269911, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:269911
    DOI: 10.22004/ag.econ.269911
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    More about this item

    Keywords

    Health Economics and Policy; Labor and Human Capital; Productivity Analysis;
    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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