In Civ context, happiness means that citizens can and will work, because the absence of happiness means they aren't working - for whatever reason. If you could directly set worktime conditions (is that a proper way to call it, I mean something like 9 to 5), harsher conditions in earlier ages would increase the work citizens could do, but in "modern times" you would get a massive strike, or perhaps a revolution.
I think in many cases the happiness effect should depend on the education level (see above). Uneducated people accept many things that the better educated won't tolerate. Most revolutions are led by well educated people, even if most members of a revolution are not. If we take fiction as evidence, you need to look no further than "1984", where surveillance, torture and other means of coercion were pretty much restricted to the few educated who remain, the uneducated simply follow the orders.
Perhaps that should be one of the main choices: Uneducated people let you walk all over them, but they are not the best workers, they don't invent things or create culture. Educated people do the research, create culture, do pretty much any job better, but they have certain ideas about many things and are unhappy if their expectations are not met.
I think in many cases the happiness effect should depend on the education level (see above). Uneducated people accept many things that the better educated won't tolerate. Most revolutions are led by well educated people, even if most members of a revolution are not. If we take fiction as evidence, you need to look no further than "1984", where surveillance, torture and other means of coercion were pretty much restricted to the few educated who remain, the uneducated simply follow the orders.
Perhaps that should be one of the main choices: Uneducated people let you walk all over them, but they are not the best workers, they don't invent things or create culture. Educated people do the research, create culture, do pretty much any job better, but they have certain ideas about many things and are unhappy if their expectations are not met.