… and the Pursuit of Happiness - Institute of Economic Affairs

… and the pursuit of happiness
wellbeing at work: any lessons?
similar policies would disgruntle those who would prefer to work
more (or lead them to moonlight in the informal economy).
It would raise costs, which could discourage private sector
job creation at a time when we need to be doing all we can to
encourage jobs for those displaced from the public sector. Further
monitoring of, or regulations on, health and safety matters would
be likely to suffer diminishing returns in the UK context, and
would again raise costs.
This chapter has emphasised that the economist’s concept of
compensating differentials is a useful antidote to interventionist
thinking. It suggests that different individuals rate job characteristics
differently and that, in seeking a preferred job, individuals
will choose a bundle of characteristics, some ‘good’ and
some ‘bad’, recognising the need for trade-offs. 21 Restrictions on
employers’ freedom of action through legislation and mandates
may prevent them from offering combinations of characteristics
which are more highly valued by potential employees than those
they are constrained to offer.
Wellbeing at work is important, and something which individuals
value more highly as incomes rise, but it is best served
by making it possible for employers to offer a range of jobs in all
shapes and sizes to suit the varied preferences and aptitudes of a
population that refuses to conform to simplistic models of attitudes
and behaviour.
21 Just as choosing a life partner involves accepting his or her faults or annoying
habits in return for the things you love about them, so choosing a job involves the
rough with the smooth. In an imperfect world, a search for a job which only has
good characteristics is likely to be as fruitless as a search for the ideal partner.
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