IDEAS home Printed from https://ideas.repec.org/a/spr/ariqol/v18y2023i2d10.1007_s11482-022-10102-7.html
   My bibliography  Save this article

Unhappy Metros: Panel Evidence

Author

Listed:
  • Adam Okulicz-Kozaryn

    (Rutgers-Camden University)

Abstract

We study the effect of urbanicity (metro v nonmetro) on life satisfaction, or Subjective WellBeing (SWB). The literature agrees that residents of metropolitan areas tend to be less satisfied with their lives than residents of smaller settlements in the developed world. But the existing evidence is cross-sectional only. This is the first study using longitudinal dataset to test the “unhappy metro” hypothesis. Using the 2009–2019 US Panel Study of Income Dynamics (PSID), we find support for the cross-sectional findings: metros are less happy than nonmetros. The effect size is practically significant, the negative effect of metro v nonmetro is equivalent to the effect of one’s health deteriorating about a third from “fair” to “poor.” Given extremely large scale of urbanization, projected 6b of people from 1950 to 2050, the combined effect of urbanicity on human wellbeing is large.

Suggested Citation

  • Adam Okulicz-Kozaryn, 2023. "Unhappy Metros: Panel Evidence," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 18(2), pages 753-763, April.
  • Handle: RePEc:spr:ariqol:v:18:y:2023:i:2:d:10.1007_s11482-022-10102-7
    DOI: 10.1007/s11482-022-10102-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11482-022-10102-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11482-022-10102-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daniel Kahneman & Peter P. Wakker & Rakesh Sarin, 1997. "Back to Bentham? Explorations of Experienced Utility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 375-406.
    2. Bruno S. Frey & Alois Stutzer, 2000. "Maximising Happiness?," German Economic Review, Verein für Socialpolitik, vol. 1(2), pages 145-167, May.
    3. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
    4. Gerdtham, Ulf-G & Johannesson, Magnus, 2001. "The relationship between happiness, health, and socio-economic factors: results based on Swedish microdata," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 30(6), pages 553-557.
    5. Florian Lederbogen & Peter Kirsch & Leila Haddad & Fabian Streit & Heike Tost & Philipp Schuch & Stefan Wüst & Jens C. Pruessner & Marcella Rietschel & Michael Deuschle & Andreas Meyer-Lindenberg, 2011. "City living and urban upbringing affect neural social stress processing in humans," Nature, Nature, vol. 474(7352), pages 498-501, June.
    6. Jamie Peck, 2016. "Economic Rationality Meets Celebrity Urbanology: Exploring Edward Glaeser's City," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 40(1), pages 1-30, January.
    7. Luis Bettencourt & Geoffrey West, 2010. "A unified theory of urban living," Nature, Nature, vol. 467(7318), pages 912-913, October.
    8. Erzo F. P. Luttmer, 2005. "Neighbors as Negatives: Relative Earnings and Well-Being," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(3), pages 963-1002.
    9. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
    10. Robert H. Frank, 2012. "The Darwin Economy: Liberty, Competition, and the Common Good: With a new afterword by the author," Economics Books, Princeton University Press, edition 1, number 9852.
    11. Alois Stutzer & Bruno S. Frey, 2004. "Reported Subjective Well-Being: A Challenge for Economic Theory and Economic Policy," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 124(2), pages 191-231.
    12. Jessica Pykett & Tess Osborne & Bernd Resch, 2020. "From Urban Stress to Neurourbanism: How Should We Research City Well-Being?," Annals of the American Association of Geographers, Taylor & Francis Journals, vol. 110(6), pages 1936-1951, November.
    13. Alex Michalos, 1985. "Multiple discrepancies theory (MDT)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 16(4), pages 347-413, May.
    14. Yew-Kwang Ng, 2011. "Happiness Is Absolute, Universal, Ultimate, Unidimensional, Cardinally Measurable and Interpersonally Comparable: A Basis for the Environmentally Responsible Happy Nation Index," Monash Economics Working Papers 16-11, Monash University, Department of Economics.
    15. Rehdanz, Katrin & Maddison, David, 2008. "Local environmental quality and life-satisfaction in Germany," Ecological Economics, Elsevier, vol. 64(4), pages 787-797, February.
    16. Kahneman, Daniel & Thaler, Richard H, 1991. "Economic Analysis and the Psychology of Utility: Applications to Compensation Policy," American Economic Review, American Economic Association, vol. 81(2), pages 341-346, May.
    17. Ruut Veenhoven & Joop Ehrhardt, 1995. "The cross-national pattern of happiness: Test of predictions implied in three theories of happiness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 34(1), pages 33-68, January.
    18. Daniel Kahneman & Alan B. Krueger, 2006. "Developments in the Measurement of Subjective Well-Being," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 3-24, Winter.
    19. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    20. Ruut Veenhoven, 2000. "The Four Qualities of Life," Journal of Happiness Studies, Springer, vol. 1(1), pages 1-39, March.
    21. Yew-Kwang Ng, 1996. "Happiness surveys: Some comparability issues and an exploratory survey based on just perceivable increments," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 38(1), pages 1-27, May.
    22. Bruno S. Frey, 2008. "Happiness: A Revolution in Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062771, December.
    23. Norbert Hirschauer & Mira Lehberger & Oliver Musshoff, 2015. "Happiness and Utility in Economic Thought—Or: What Can We Learn from Happiness Research for Public Policy Analysis and Public Policy Making?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 121(3), pages 647-674, April.
    24. Daniel Kahneman & Richard H. Thaler, 2006. "Anomalies: Utility Maximization and Experienced Utility," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 221-234, Winter.
    25. Camilla Lenzi & Giovanni Perucca, 2021. "Not too close, not too far: Urbanisation and life satisfaction along the urban hierarchy," Urban Studies, Urban Studies Journal Limited, vol. 58(13), pages 2742-2757, October.
    26. Philip S. Morrison & Mikko Weckroth, 2018. "Human values, subjective well-being and the metropolitan region," Regional Studies, Taylor & Francis Journals, vol. 52(3), pages 325-337, March.
    27. Ng, Yew-Kwang, 1997. "A Case for Happiness, Cardinalism, and Interpersonal Comparability," Economic Journal, Royal Economic Society, vol. 107(445), pages 1848-1858, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hajdu, Tamás & Hajdu, Gábor, 2011. "A hasznosság és a relatív jövedelem kapcsolatának vizsgálata magyar adatok segítségével [Examining the relation of utility and relative income using Hungarian data]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 56-73.
    2. Byela Tibesigwa & Martine Visser & Brennan Hodkinson, 2016. "Effects of Objective and Subjective Income Comparisons on Subjective Wellbeing," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(1), pages 361-389, August.
    3. Adam Okulicz-Kozaryn & Rubia R. Valente, 2019. "Livability and Subjective Well-Being Across European Cities," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 14(1), pages 197-220, March.
    4. Senik, Claudia, 2009. "Direct evidence on income comparisons and their welfare effects," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 408-424, October.
    5. Asena Caner, 2016. "Happiness and Life Satisfaction in Turkey in Recent Years," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 361-399, May.
    6. Odermatt, Reto & Stutzer, Alois, 2017. "Subjective Well-Being and Public Policy," IZA Discussion Papers 11102, Institute of Labor Economics (IZA).
    7. Ingebjørg Kristoffersen, 2010. "The Metrics of Subjective Wellbeing: Cardinality, Neutrality and Additivity," The Economic Record, The Economic Society of Australia, vol. 86(272), pages 98-123, March.
    8. Koen Decancq & Marc Fleurbaey & Erik Schokkaert, 2015. "Happiness, Equivalent Incomes and Respect for Individual Preferences," Economica, London School of Economics and Political Science, vol. 82, pages 1082-1106, December.
    9. Bookwalter, Jeffrey & Fitch-Fleischmann, Benjamin & Dalenberg, Douglas, 2011. "Understanding life-satisfaction changes in post-apartheid South Africa," MPRA Paper 34579, University Library of Munich, Germany.
    10. Adam Okulicz-Kozaryn & Joan Maya Mazelis, 2017. "More Unequal in Income, More Unequal in Wellbeing," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(3), pages 953-975, July.
    11. Schmitt, Maike, 2013. "Subjective Well-Being and Air Quality in Germany," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 133(2), pages 275-286.
    12. Ada Ferrer-i-Carbonell, 2013. "Happiness economics," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 4(1), pages 35-60, March.
    13. Stutzer, Alois & Frey, Bruno S., 2012. "Recent Developments in the Economics of Happiness: A Selective Overview," IZA Discussion Papers 7078, Institute of Labor Economics (IZA).
    14. Ahmadiani, Mona & Ferreira, Susana, 2019. "Environmental amenities and quality of life across the United States," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    15. Stutzer, Alois & Frey, Bruno S., 2010. "Recent Advances in the Economics of Individual Subjective Well-Being," IZA Discussion Papers 4850, Institute of Labor Economics (IZA).
    16. Levinson, Arik, 2012. "Valuing public goods using happiness data: The case of air quality," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 869-880.
    17. Can Mavruk & Ersin Kıral & Gülsen Kıral, 2021. "Spatial Effects Over Time-Framed Happiness," Journal of Happiness Studies, Springer, vol. 22(2), pages 517-554, February.
    18. Susana Ferreira & Mirko Moro, 2010. "On the Use of Subjective Well-Being Data for Environmental Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(3), pages 249-273, July.
    19. Bruno S. Frey & Alois Stutzer, 2009. "Glück ? die ökonomische Analyse," CREMA Working Paper Series 2009-11, Center for Research in Economics, Management and the Arts (CREMA).
    20. Vendrik, Maarten C.M. & Woltjer, Geert B., 2007. "Happiness and loss aversion: Is utility concave or convex in relative income?," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1423-1448, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ariqol:v:18:y:2023:i:2:d:10.1007_s11482-022-10102-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.