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Can a Shorter Workweek Make People Happier?

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Can A Shorter Workweek Make People Happier?

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Can A Shorter Workweek Make People Happier?

For many people, the concept of a shorter workweek is enticing. After all, it can be difficult to find enough time for the things we love.

Is it reasonable then, in our quest for happiness, to begin working less? Advocates of a shorter workweek would agree, but these policies have yet to be widely-adopted.

Today’s chart plots data from the World Happiness Report 2019 and the OECD to determine if there’s any correlation between a country’s happiness and average hours worked per person.

What Happens When We Work Too Much?

The unhealthy side effects of working long hours are well established. In extreme cases, however, symptoms can extend beyond the usual stress and fatigue.

For example, the American Heart Association found that people under the age of 50 had a higher risk of stroke when working over 10 hours a day for a decade or more. Another study, conducted across 14 countries, concluded that people who worked long hours were 12% more likely to become excessive drinkers.

If working longer days is so harmful to our well-being, what happens if we work fewer hours instead?

Comparing the Numbers

The tables below list the happiest countries as well as the unhappiest countries in the OECD; happiness scores range from 0 to 10, with a 10 representing the best life possible.

Based on the data, there appears to be some degree of correlation between a person’s happiness and the amount of hours they work.

Here’s how the five happiest countries stack up:

CountryHappiness Score (0-10)5-Yr Average Annual
Hours Worked
Difference in Hours Worked
from OECD Average (1,682 hrs) 
🇫🇮 Finland7.7691,559 hrs-123 hrs
🇩🇰 Denmark7.6001,406 hrs-276 hrs
🇳🇴 Norway7.5541,422 hrs-260 hrs
🇮🇸 Iceland7.4941,491 hrs-191 hrs
🇳🇱 Netherlands7.4881,432 hrs-250 hrs

The five happiest countries each work over 100 hours less than the OECD average. Compare this to the five least happiest countries:

CountryHappiness Score (0-10)5-Yr Average Annual
Hours Worked
Difference in Hours Worked
from OECD Average (1,682 hrs) 
🇬🇷 Greece5.2871,946 hrs+264 hrs
🇹🇷 Turkey5.3731,832 hrs+150 hrs
🇵🇹 Portugal5.6931,722 hrs+40 hrs
🇭🇺 Hungary5.7581,749 hrs+67 hrs
🇯🇵 Japan5.8861,710 hrs*+28 hrs

*OECD data includes full- and part-time workers. While this affects the entire data set, Japan’s high share of part-time workers (37% as of 2017) suggests it is particularly vulnerable to underestimation.

Coincidentally, all five of the least happiest countries work more hours than the OECD average, up to over 264 hours in the case of Greece.

Happiness is multifaceted, though, and we should avoid drawing conclusions from a single variable. For instance, the World Happiness Report 2019 calculates happiness scores based on eight distinct metrics:

MetricDescription
#1Positive AffectThe average of 3 measures: happiness, laughter, and enjoyment
#2Negative AffectThe average of 3 measures: worry, sadness, and anger
#3Social SupportHaving someone to count on in times of trouble
#4FreedomThe ability to make life choices
#5CorruptionThe perception of corruption throughout business and government
#6GenerosityBased on survey results about charity donations
#7GDP per Capita (Log Scale)Economic output per person
#8Healthy Life ExpectancyYears spent in good health

With these in mind, we can make a few additional observations.

Four of the five happiest OECD countries are located in the Nordics, a region known for low corruption rates and robust social safety nets. On the other end of the scale, economic hardship is a recurring theme among the OECD’s least happiest countries. The falling Turkish lira and Greece’s debt crisis are two significant examples.

To properly measure the happiness-boosting potential of a shortened workweek, it seems we need to isolate its effects.

Challenging the Status Quo

Employers are now experimenting with shorter work schedules to see if happier employees are in fact better employees.

Case 1: Successful Trial

Perpetual Guardian, a New Zealand-based estate planning firm, trialed a four-day workweek for two months with no changes to compensation.

The trial was hailed as a success. Employee stress levels fell by 7 percentage points while overall life satisfaction rose by 5 percentage points. Perhaps most impressive is the fact that productivity remained the same.

Employees designed a number of innovations and initiatives to work in a more productive and efficient manner.

– Helen Delaney, University of Auckland

Following the trial, the firm’s founder expressed interest in implementing the four-day workweek on a permanent basis.

Case 2: Successful Trial with Trade-offs

Filimundus, a Sweden-based software studio, trialed a six-hour workday in 2014. Staff reception was positive, and the company has since adopted it permanently.

There were trade-offs, however. While staff enjoyed more time for their private lives, productivity across different departments saw mixed results.

We did see some decrease in production for some staff, mostly our artists, but an increase in production for our programmers. So money-wise, in costs, it evened out.

– Linus Feldt, CEO

Interestingly, the studio also trialed a seven-hour workday, and saw no positive effects.

Case 3: An Unsustainable Solution

Public healthcare workers in Gothenburg, Sweden, trialed a six-hour workday for two years. Similar to the first case, compensation was unchanged.

While the trial achieved good results—staff experienced lower stress levels and patients received a higher level of care—the policy was unsustainable.

It’s far too expensive to carry out a general shortening of working hours within a reasonable time frame.

– Daniel Bernmar

17 additional staff were hired to compensate for the shorter workdays, increasing the local government’s payroll by $738,000. The city council did note, however, that lower unemployment costs offset this increase by approximately 10%.

Picking Up Momentum

These experiments are garnering attention from around the world.

Even Japan, a country known for its “overtime culture”, is getting in on the action. Microsoft offices in the East Asian country tested a four-day workweek in August 2019, and reported happier staff, as well as an impressive 40% boost in productivity.

While the results of these early experiments are indeed promising, they’ve exposed the nuances that exist between industries and job types, and the need for further trials. One thing is certain though—shorter workweek policies should not be interpreted as a “one size fits all” solution for happier lives.

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United States

Mapped: How Much Does it Take to be the Top 1% in Each U.S. State?

An annual income anywhere between $360,000-$950,000 can grant entry into the top 1%—depending on where you live in America.

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A cropped map of the U.S. listing the annual income needed to be in the top 1% in each state.

How Much Does it Take to be the Top 1% in Each U.S. State?

There’s an old saying: everyone thinks that they’re middle-class.

But how many people think, or know, that they really belong to the top 1% in the country?

Data from personal finance advisory services company, SmartAsset, reveals the annual income threshold at which a household can be considered part of the top 1% in their state.

Some states demand a much higher yearly earnings from their residents to be a part of the rarefied league, but which ones are they, and how much does one need to earn to make it to the very top echelon of income?

Ranking U.S. States By Income to Be in the Top 1%

At the top of the list, a household in Connecticut needs to earn nearly $953,000 annually to be part of the one-percenters. This is the highest minimum threshold across the country.

In the same region, Massachusetts requires a minimum annual earnings of $903,401 from its top 1% residents.

Here’s the list of all 50 U.S. states along with the annual income needed to be in the 1%.

RankStateTop 1% Income
Threshold
Top 1% Tax Rate
(% of annual income)
1Connecticut$952,90228.40%
2Massachusetts$903,40127.15%
3California$844,26626.95%
4New Jersey$817,34628.01%
5Washington$804,85325.99%
6New York$776,66228.29%
7Colorado$709,09225.86%
8Florida$694,98725.82%
9Illinois$660,81026.35%
10New Hampshire$659,03726.25%
11Wyoming$656,11824.79%
12Virginia$643,84826.11%
N/ANational Average$652,657N/A
13Maryland$633,33325.94%
14Texas$631,84925.83%
15Utah$630,54423.77%
16Minnesota$626,45125.53%
17Nevada$603,75125.19%
18South Dakota$590,37322.99%
19Pennsylvania$588,70224.95%
20North Dakota$585,55624.76%
21Georgia$585,39725.06%
22Oregon$571,81324.66%
23Arizona$564,03125.22%
24Idaho$560,04023.17%
25North Carolina$559,76225.31%
26Montana$559,65624.46%
27Kansas$554,91225.03%
28Rhode Island$548,53125.26%
29Tennessee$548,32925.12%
30Alaska$542,82425.38%
31Nebraska$535,65124.10%
32Delaware$529,92825.37%
33Vermont$518,03923.63%
34Wisconsin$517,32124.90%
35South Carolina$508,42724.40%
36Michigan$504,67125.01%
37Maine$502,60524.04%
38Missouri$500,62624.93%
39Ohio$500,25325.09%
40Hawaii$495,26324.12%
41Iowa$483,98524.09%
42Indiana$473,68524.55%
43Alabama$470,34123.82%
44Oklahoma$460,17223.68%
45Louisiana$458,26924.80%
46Arkansas$450,70021.11%
47Kentucky$445,29424.14%
48New Mexico$411,39523.35%
49Mississippi$381,91923.04%
50West Virginia$367,58223.26%
N/ANational Median
Household Income
$75,000N/A

California ($844,266), New Jersey ($817,346), and Washington ($804,853) round out the top five states with the highest minimum thresholds to make it to their exclusive rich club.

On the other end of the spectrum, the top one-percenters in West Virginia make a minimum of $367,582 a year, the lowest of all the states, and about one-third of the threshold in Connecticut. And just down southwest of the Mountain State, Mississippi’s one-percenters need to make at least $381,919 a year to qualify for the 1%.

A quick glance at the map above also reveals some regional insights.

The Northeast and West Coast, with their large urban and economic hubs, have higher income entry requirements for the top 1% than states in the American South.

This also correlates to the median income by state, a measure showing Massachusetts households make nearly $90,000 a year, compared to Mississippians who take home $49,000 annually.

How Much Do the Top 1% Pay in Taxes?

Meanwhile, if one does make it to the top 1% in states like Connecticut and Massachusetts, expect to pay more in taxes than other states, according to SmartAsset’s analysis.

A chart showing how states with the top highest and lowest average tax rates for their top 1% residents.

The one-percenters in the top five states pay, on average, between 26–28% of their income in tax, compared to those in the bottom five who pay between 21–23%.

And this pattern exists through the dataset, with higher top 1% income thresholds correlating with higher average tax rates for the wealthy.

State RanksMedian Tax Rate
Top 1026.65%
20-3025.09%
30-4024.65%
10-2025.07%
40-5023.75%

These higher tax rates point to attempts to reign in the increasing wealth disparity in the nation where the top 1% hold more than one-third of the country’s wealth, up from 27% in 1989.

Where Does This Data Come From?

Source: SmartAsset’s America’s Top 1% Is Different in Each State uses data from 2020 individual tax filings from the IRS, adjusted to 2023 dollars using the Bureau of Labor Statistics’ Consumer Price Index.

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