The aim of this research is to study the socio-economic factors affecting happiness and its relationship with individual labor force productivity. The statistical population includes all of the employees who are working in the Kermanshah manufacturing establishments with 50 employees or more. Each establishment was assigned as a layer, and the simple random sampling method was used. The data were gathered through the Oxford Happiness, individual and demographic produativity questionnaires and were analyzed using the software SPSS and Eviews. The results showed that the variables productivity, the number of children, psychological health, optimism, and ‘interest in work’ have a positive and significant relationship with happiness, but the variable monthly income has a negative relationship with happiness. Furthermore, it has been recognized that factors such as happiness, attending training classes, job satisfaction, job security, accepting job among family members, and faith in God have a positive and significant relationship with productivity. Finally, the hypothesis of equality of the means for the variables happiness and productivity has been accepted with regard to gender difference (male/female).
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