Centre for Economic Performance (CEP)

Staff Biography

[Photo: Richard LAYARD] Professor Richard LAYARD
Programme Director - Wellbeing
Tel:  020 7955 7048
Room/Desk: 32L 2.13  

Curriculum Vitae PDF 

Expertise: wellbeing, labour, unemployment, educational policy, happiness


A Global Apollo Programme to combat climate change

Authored by a group of leading scientists, economists and businessmen, this new report sets out a major global research programme to make carbon-free baseload electricity less costly than electricity from coal, and to do it within 10 years.

Download the report


World Happiness Report 2015

The world has come a long way since the first World Happiness Report in 2012. Happiness is increasingly considered a proper measure of social progress and a goal of public policy.

The year 2015 is a watershed for humanity, with the pending adoption of Sustainable Development Goals (SDGs) to help guide the world community towards a more inclusive and sustainable pattern of global development... Read more and download a copy


THRIVE: the power of evidence-based psychological therapies.
by Richard Layard and David M. Clark.

Britain has become a world leader in providing psychological therapies thanks to the work of Richard Layard and David Clark. But, even so, in Britain and worldwide the majority of people who need help still don't get treatment. This is both unjust and a false economy. This book argues for change. [more]

Purchase this book from the publisher

WISH Report 2015

Report - Healthy Young Minds: Transforming the mental health of children
Report of the WISH Mental Health and Wellbeing in Children Forum, co-edited by Richard Layard and Ann Hagell

Download Report (PDF)
Watch Panel Session (links to WISH website)
WISH Website (World Innovation Summit for Health)

Report calls for wellbeing to be at the heart of public policy design.

An independent commission chaired by Gus O'Donnell, with Richard Layard, Angus Deaton, Martine Durand and David Halpern as its members, proposes a radical reform of public policy-making... [more]

Richard Layard is a labour economist who worked for most of his life on how to reduce unemployment and inequality. He is also one of the first economists to work on happiness, and his main current interest is how better mental health could improve our social and economic life.


He has always believed, like the 18th Century Enlightenment, that societies should be judged by the happiness of the people. And since the 1970s he has urged fellow economists to return to the 18th and 19th century idea that public policy should maximise a social welfare function depending on the distribution of happiness. In 1980 he wrote, according to Richard Easterlin, "the first paper to focus specifically on the policy implications of empirical research on happiness". In 2005 he published Happiness: Lessons from a New Science. A second edition was published in 2011, with a new part in which he responds to the critics and clarifies his argument. He continues to find significant effects of relative income on happiness and to emphasise the importance of non-income variables on aggregate happiness.

In particular he stresses the role of mental health and argues that psychological treatments ought to be much more widely available. Among other good effects, they pay for themselves through increased employment and reduced costs of other healthcare. His work here, with the distinguished psychologist David Clark, has led to major changes in the British National Health Service.

In 2009 he co-authored the Good Childhood Report which emphasised the importance of early intervention to improve the mental health of children. The Report's proposals have again led to major initiatives in British healthcare. He is also actively involved in promoting mental health in schools.

His research further tries to clarify how far early mental health interventions can improve adult incomes. This has contributed to a popular book on mental health written jointly with David Clark, published by Penguin in July 2014.

Like many others, Layard has pushed governments to measure the wellbeing of the population and was delighted when the British Prime Minister David Cameron announced in November 2010 that wellbeing would be a major government objective and be regularly measured in the national statistics.(Click here for his speech at the Conference launching this initiative)

Worldwide, there is now a search for new models of progress. Professor Layard chaired the World Economic Forum Global Agenda Council on Health and Wellbeing, which produced a report at Davos in January 2012, “WellBeing and Global Success”. The OECD has for some years been attempting to redefine progress, and in July 2011 the UN General Assembly advocated greater priority for policies that promote happiness. In April 2012, the United Nations held a high-level meeting on what this involves, and Richard co-edited (with Jeff Sachs and John Helliwell) a World Happiness Report. The second World Happiness Report 2013 was published in September. Richard Layard has been on the Legatum Commission for Wellbeing Policy chaired by Gus O'Donnell. Its report on wellbeing and public policy was launched in March 2014

Richard Layard's concern with how to promote a happier society led him to co-found a new movement called Action for Happiness, which was launched in Spring 2011. Members from all backgrounds pledge to live so as to create as much happiness as they can and as little misery. The movement already has more than 55,000 members from over 165 countries.

Unemployment, skills and inequality

On unemployment, in the 1980s Layard and colleagues developed the Layard-Nickell model of how the level of unemployment is determined. This has become the most commonly used model by European economists and governments. It assigns an important role to how unemployed people are treated, and provides the intellectual basis for the welfare-to-work policies introduced in many countries.

The basic message is in Unemployment: Macroeconomic Performance and the Labour Market. This was first published in 1991 and a second edition in 2005 shows how well the model predicts the development of unemployment in different countries since 1991.

On inequality, his work shows the key role of education in influencing the income of individuals and families. He has been a lifelong advocate of better education (including apprenticeship) for less academic youngsters.

Public life

In 1985 he founded the Employment Institute which has played a major role in pushing the ideas of welfare-to-work. He did the same as Chairman of the European Commission's Macroeconomic Policy Group during the 1980s. From 1991-1997 he was a part-time economic adviser to the Russian Government and from 1997 to 2001 a part-time consultant to the British government on welfare-to-work and vocational education.

In 2005 the British government accepted his proposals on psychological therapy and since then he has (as National Adviser) been heavily involved in implementing the government programme of Improving Access to Psychological Therapies (IAPT). In 2010, this was extended to cover children.

In 2000 he was made a member of the House of Lords.

Selected Writings:



Happiness : Lessons from a new science
Penguin, Second Edition, April 2011.

Download Annex

Measuring Subjective Well-Being for Public Policy" (with P. Dolan and R. Metcalfe), Office for National Statistics, February 2011

“Does Relative Income Matter? Are the Critics Right?" (with G. Mayraz and S. Nickell) in E Diener, J Helliwell and D Kahneman (eds)  International Differences in Well-Being, Oxford University Press, New York, 2010

Measuring subjective well-being", Science, Vol 327, Pages 534-5, January 2010

"Why subjective well-being should be the measure of progress", given at the OECD World Forum on “Statistics, Knowledge and Policy - Charting Progress, Building Visions, Improving Life", Busan, Korea - 27-30 October 2009

“Well-being Measurement and Public Policy” in A. Krueger (ed) Measuring the Subjective Well-Being of Nations, National Accounts of Time Use and Well-Being, NBER Conference, Report, University of Chicago Press, 2009

The Greatest Happiness Principle: Its time has come”, Well-being: How to lead the good life and what government should do to help, (eds) S Griffiths and R Reeves, Social Market Foundation, July 2009

Good Childhood Report

A Good Childhood: Searching for Values in a Competitive Age - Penguin, February 2009
Launch of the Report
4 February 2009


The marginal utility of income” (with S. Nickell and G. Mayraz),  Journal of Public Economics, Special Issue: Happiness and Public Economics (eds) T. Besley and E. Saez, Vol 92, Nos 8-9, August 2008

Happiness and public policy: a challenge to the profession, Economic Journal, 116, C24-C33, March 2006

Rethinking Public Economics: The Implications of Rivalry and Habit” in L. Bruni and P. L. Porta (eds) Economics and Happiness, Oxford University Press, 2005

"The Return of Happiness: Why wellbeing should be at the heart of politics", Prospect, March 2005

Lionel Robbins Memorial Lectures delivered at LSE on 3rd, 4th and 5th March 2003:
Happiness: Has Social Science A Clue?
Lecture 1: What is happiness? Are we getting happier?
Lecture 2: Income and happiness: rethinking economic policy
Lecture 3: How can we make a happier society

“Human satisfactions and public policy”, Economic Journal, December 1980.  Reprinted in Richard A Easterlin (ed), Happiness in Economic,  Edward Elgar, 2002.


Mental health


Thrive: the power of evidence-based psychological therapies.
Published by Allen Lane on 3rd July 2014, priced: £20. E-book also available.

Download Annex


Mental Illness and Unhappiness, CEP Discussion Paper No1239, Dan Chisholm, Richard Layard, Vikram Patel, Shekhar Saxena, September 2013

Enhancing Recovery Rates: Lessons from Year One of the English Improving Access to Psychological Therapies Programme, CEP Discussion Paper No1227, David M. Clark, Alex Gyani, Richard Layard, Roz Shafran, July 2013

Mental Health: The New Frontier for Labour Economics, CEP Discussion Paper No1213, May 2013.

"Enhancing Recovery Rates in IAPT Services: Lessons from analysis of the Year One data" (with A Gyani, R Shafran, and D Clark), Behaviour Research and Therapy, Vol 51, Issue 9, Pages 597-606, 2013

How Mental Health Loses Out in the NHS, The Centre for Economic Performance's Mental Health Policy group, June 2012

Improving Access to Psychological Therapy: Initial Evaluation of Two UK Demonstration Sites” (with D Clark, R Smithies, D Richards, R Suckling and B Wright), Behaviour Research and Therapy, Vol 47, Issue 8, Pages 637-728, August 2009

"Improving Tier 2-3 CAMHS", July 2009

“Cost-benefit analysis of psychological therapy”,  (with D. Clark, M. Knapp and G. Mayraz), National Institute Economic Review, No 202, October 2007.

"The Teaching of Values", Ashby Lecture, University of Cambridge, 2 May 2007

The Depression Report: A New Deal for Depression and Anxiety Disorders, The Centre for Economic Performance's Mental Health Policy group, June 2006

The case for psychological treatment centres”, BMJ, 332: 1030-2, April 2006

“Mental health: Britain’s biggest social problem?", Paper presented at the No.10 Strategy Unit Seminar on Mental Health, 20th January 2005

"Mental Health: the Choice of Therapy for All", CentrePiece, December 2005 This article is an edited version of the inaugural Sainsbury Centre for Mental Health Lecture delivered on 12 September 2005.


Unemployment, skills and inequality

Combarring Unemployment

Combatting Unemployment, with Stephen Nickell, IZA Prize Volume,
Oxford University Press, May 2011



"A Job Guarantee", with Paul Gregg, March 2009

“Unemployment experience: some implications for France”, Travail et Emploi, DARES, No 118, April-June 2009

Unemployment: Macroeconomic Performance and the Labour Market, (with S. Nickell and R. Jackman) Oxford University Press, 1991; 2nd ed., 2005

“Full Employment for Europe” in (eds) A Lopez-Claros, M Porter and K Schwab The Global Competitiveness Report 2005-2006: Policies Underpinning Rising Prosperity,World Economic Forum, 2005

“Apprenticeship and the skills gap” in “Learning to Succeed: the next decade”, the National Commission on Education Follow-up Group, Occasional Paper, University of Brighton, 2003

"Full Employment Is Not Just a Dream" (with S. Nickell), CentrePiece, February 2003
See also Jaap de Koning, Richard Layard, Steve Nickell and Niels Westergaard-Nielsen, "Policies for Full Employment", Department for Works and Pensions Report, March 2004

"Britain's Record on Skills",(with S.  McIntosh and A. Vignoles), Paper No' CEEDP0023, May 2002

"Welfare to Work and the New Deal" World Economics, Vol. 1, No 2 April-June 2000

“Welfare-to-Work and the Fight against Long-Term Unemployment” (with T. Boeri and S. Nickell), Research Brief No. 206, Department for Education and Skills, London, June 2000

“Labour Market Institutions and Economic Performance” (with S. Nickell) in O. Ashenfelter and D Card (eds),  Handbook of Labour Economics, Vol. 3C, North-Holland, 1999

Tackling Inequality, Macmillan, 1999

Tackling Unemployment, Macmillan, 1999

"European versus US Unemployment: Different Responses to Increased Demand for skill?", (with R. Jackman, M. Manacorda, and B. Petrongolo), Paper No' CEPDP0349, June 1997

"Combatting Unemployment: Is Flexibility Enough?", (with R. Jackman and S. Nickell), Paper No' CEPDP0293, March 1996

"Lifelong Learning" (with P. Robinson and H. Steedman), Paper No' CEPOP09, December 1995

Britain’s Training Deficit, Avebury, (edited with K. Mayhew and G. Owen) 1994.

Stopping Unemployment, The Employment Institute, (with J. Philpott) September 1991.

The Performance of the British Economy, (edited with R. Dornbusch), Oxford University Press, 1987. 

Handbook of Labor Economics, (edited with O. Ashenfelter), North‑Holland, 1987.   Fifth reprint 2003 (Vol 1).

How to Beat Unemployment, Oxford University Press, 1986. 

The Causes of Poverty, (with D. Piachaud and M. Stewart) Background Paper No. 5, Royal Commission on the Distribution of Income and Wealth, HMSO, 1978. 



The Coming Russian Boom, (with J. Parker), The Free Press, 1996.

East-West Migration: The Alternatives, M.I.T. Press, 1992. (with O. Blanchard, R. Dornbusch and P. Krugman).

Macroeconomics.  A Text for Russia, Wiley, Moscow, 1994 (in Russian).

Cost-Benefit Analysis, (Harmondsworth: Penguin) with long introduction, 1972. Second Edition: Cambridge University Press, 1994. (edited with S. Glaister)

Microeconomic Theory, McGraw‑Hill (U.S.), 1978.  (with A.A. Walters). Reissued as McGraw Hill International Edition, 1987.      


See also Publications on LSE Research Online book

CEP Publications: