Journal
JOURNAL OF LABOR ECONOMICS
Volume 33, Issue 4, Pages 789-822Publisher
UNIV CHICAGO PRESS
DOI: 10.1086/681096
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Funding
- Economic and Social Research Council [ES/L011719/1] Funding Source: researchfish
- ESRC [ES/L011719/1] Funding Source: UKRI
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Some firms say they care about the well-being and happiness of their employees. But are such claims hype or scientific good sense? We provide evidence, for a classic piece rate setting, that happiness makes people more productive. In three different styles of experiment, randomly selected individuals are made happier. The treated individuals have approximately 12% greater productivity. A fourth experiment studies major real-world shocks dbereavement and family illness). Lower happiness is systematically associated with lower productivity. These different forms of evidence, with complementary strengths and weaknesses, are consistent with the existence of a causal link between human well-being and human performance.
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