The Effect of Income on Labor Force Happiness in Iran

In recent years, economists have paid attention to the relationship between emotions and productivity. Economists investigated the bi-directional effect of emotion and subjective well-being, such as happiness, on different economic variables, such as productivity, health, income, and so on. In this paper, we try to study the effect of income on labour force happiness in Iran. For this purpose, we employ data over the period 2000-2005. In addition, because the dependent variable (happiness) is an ordered variable, we use an ordered choice model in a panel data framework to estimate the coefficients of the model. The results show that the income has a positive and significant effect on labour force happiness in Iran.