Happiness as a guide to labor market policy

Abstract

Society should be organized to foster personal happiness and well-being. Employment is central in this context and happiness at work increases productivity, whereas unemployment has negative effects on long-term happiness. Policies that reduce unemployment can thus increase happiness; but, the timing and targeting of such policies is important. Robotization may decrease employment of certain groups with possible concomitant loss in happiness. So to ensure national well-being and greater productivity, governments should put full employment center-stage.