Emotional Status and Productivity: Evidence from a Japanese Company in the Special Economic Zone in Laos

Abstract

This study examined workers’ emotional states and productivity by assessing on-job emotionality recorded by a specially designed wearable biometric device. We conducted the experiment at KP Beau Lao co, ltd, a Japanese plastic toys and cosmetic products company located in Savannakhet province in Southwestern Laos. Our sample included 15 plastic toy painters. Mental status, daily output, and other issues were recorded for three consecutive working days. Using random effects panel regression models, we examined how productivity, operationalized as the log of daily output, was related to workers’ emotional states, including the amount of time workers reported being happy, angry, relaxed, and sad. We controlled for conversation time, heart rate, and other demographic features. Results revealed that happiness was significantly and positively related to productivity. No other emotional state was significantly related to productivity. The present results suggest that workers’ emotional states need to be addressed as part of an organization’s operational strategy in order to ensure higher productivity.

Keywords: productivity, emotional status, wearable biometric device

JEL Classification: D24, E24, J24, O4