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Happiness and productivity

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Oswald, Andrew J. , Proto, Eugenio and Sgroi, Daniel (2013) Happiness and productivity. Working Paper. Coventry, UK: Department of Economics, University of Warwick. CAGE Online Working Paper Series, Volume 2013 (Number 108).

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Abstract

Some firms say they care about the happiness and ‘well-being’ of their employees. But are such
claims hype? Or might they be scientific good sense? This study provides evidence that happiness
makes people more productive. First, we examine fundamental real-world shocks (bereavement and
family illness) imposed by Nature. We show that lower happiness is associated with lower
productivity. Second, within the laboratory, we design two randomized controlled trials. Some
individuals are deliberately made happier, while those in a control group are not. The treated
individuals have 10-12% greater productivity than those in the control group. These complementary
kinds of evidence, with their different strengths and weaknesses, point to a consistent pattern. They
suggest that happiness raises human performance.

Item Type: Working or Discussion Paper (Working Paper)
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HM Sociology
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Happiness, Production (Economic theory), Industrial productivity
Series Name: CAGE Online Working Paper Series
Publisher: Department of Economics, University of Warwick
Place of Publication: Coventry, UK
Official Date: January 2013
Dates:
DateEvent
January 2013Published
Volume: Volume 2013
Number: Number 108
Number of Pages: 24
Institution: University of Warwick
Status: Not Peer Reviewed
Publication Status: Published
Access rights to Published version: Open Access (Creative Commons)
Date of first compliant deposit: 5 May 2016
Date of first compliant Open Access: 5 May 2016
Funder: Economic and Social Research Council (Great Britain) (ESRC), Leverhulme Trust (LT)
Version or Related Resource: Oswald, A.J., Proto, E and Sgori, D. (2008). Happiness and productivity. [Coventry] : University of Warwick, Economics Department. (Warwick economic research papers, no.882). http://wrap.warwick.ac.uk/id/eprint/1335 Proto, Eugenio, et al. (2009). Happiness and productivity. Happiness and Relational Goods conference. Venice, Italy, 11-13 Jun 2009. http://wrap.warwick.ac.uk/id/eprint/45026
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