Analysis of Employee Well-Being and Productivity by Decomposition

Abstract: The paper examines the relationship between the workplace well-being and productivity in the European countries. It is quantified by the Oaxaca decomposition technique, how the job-satisfaction may increase the productivity in the different regions. The developed economies are considered according to the four main social models (Anglo-Saxon, Nordic, Mediterranean and continental countries), while three groups of transition economies are distinguished (Baltic, Middle and South-Eastern European countries). It has been found that workplace well-being have a relevant impact on productivity in the European economies, but the strength of this impact positively correlates with the development level.