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Big-city life (dis)satisfaction? The effect of living in urban areas on subjective well-being

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  • David Loschiavo

    (Bank of Italy)

Abstract

This paper investigates the effect of big-city life on individuals' well-being. Combining data on Italian municipalities' characteristics with individual-level survey data, I find that city size negatively affects subjective well-being. This association is not driven by omitted variable bias or by spatial sorting of citizens. Commute time accounts for most of the differences in subjective well-being among cities of different size. There is suggestive evidence that the negative effect of commuting on well-being is caused by reduced time availability for fostering personal relationships and engaging in leisure activities. This finding suggests that interventions reducing the amount of time people spend in an unpleasant state can spur agglomeration economies and their contribution to aggregate productivity and growth.

Suggested Citation

  • David Loschiavo, 2019. "Big-city life (dis)satisfaction? The effect of living in urban areas on subjective well-being," Temi di discussione (Economic working papers) 1221, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_1221_19
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    More about this item

    Keywords

    subjective well-being; urbanization; commute time;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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