Happiness and Productivity

Happiness and Productivity

2015 | Andrew J. Oswald, Eugenio Proto, Daniel Sgroi
This study explores the relationship between happiness and productivity, providing evidence that happier individuals are more productive. The research is conducted in a piece rate setting using a series of experiments and real-world shocks to happiness. In four experiments, randomly selected individuals are made happier through various means, such as watching comedy clips or receiving snacks and drinks. The results show that these interventions lead to a significant increase in productivity, with an average improvement of approximately 12%. Additionally, the study examines the impact of major real-world shocks, such as family bereavement and illness, finding that lower happiness is systematically associated with lower productivity. The findings suggest a causal link between human well-being and performance, highlighting the importance of emotional well-being in the workplace. The study also discusses potential theoretical explanations for these results and their implications for firms' policies and management practices.This study explores the relationship between happiness and productivity, providing evidence that happier individuals are more productive. The research is conducted in a piece rate setting using a series of experiments and real-world shocks to happiness. In four experiments, randomly selected individuals are made happier through various means, such as watching comedy clips or receiving snacks and drinks. The results show that these interventions lead to a significant increase in productivity, with an average improvement of approximately 12%. Additionally, the study examines the impact of major real-world shocks, such as family bereavement and illness, finding that lower happiness is systematically associated with lower productivity. The findings suggest a causal link between human well-being and performance, highlighting the importance of emotional well-being in the workplace. The study also discusses potential theoretical explanations for these results and their implications for firms' policies and management practices.
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