We show that happiness raises productivity. In Experiment 1, a randomized trial is designed. Some subjects have their happiness levels increased, while those in a control group do not. Treated subjects have 12% greater productivity in a paid piece-rate task. They alter output but not per-piece quality of work. To check the robustness and lasting nature of such effects, a second experiment is designed. Major real-world unhappiness shocks -- bereavement and family illness -- are studied. The results from (real-life shock) Experiment 2 are consistent with those from (random-assignment laboratory shock) Experiment 1. |