“Happiness economics” in reverse: Does happiness affect productivity?

Source: Daniel Sgroi, VoxEU.org, 26 July 2010

Happiness economics typically looks at how macro-level variables such as economic growth affect happiness. This column turns such thinking on its head and asks whether a rise in happiness might change behaviour at the micro-level, looking specifically at productivity. Experiments suggest that happiness raises productivity by increase workers’ effort. Economists may need to take the emotional state of economic agents seriously.

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