Happiness and Productivity

Date: March 1, 2010

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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 those in a control group do not. A rise in happiness
leads to greater productivity in a paid piece-rate task. The effect is large; it can be
replicated; it exists in male and female subsamples; and it is not a reciprocity effect.
We discuss the implications for economics.

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