Happiness and Productivity
Eugenio Proto, Andrew J. Oswald, Daniel Sgroi
Last modified: 2009-05-15
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.
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