Regional disparities in the sensitivity of wellbeing to poverty measures

Consumption, poverty and wellbeing represent fundamental aspects in the analysis of household living conditions. Empirical evidence in the literature suggests a strong relationship between poverty and subjective wellbeing, usually mediated by contextual and territorial characteristics, although a full understanding of the sensitivity of this relationship to regional disparities is still lacking. In this study, we provide a detailed analysis of the extent to which territorial aspects influence the poverty-subjective wellbeing nexus, using Italian household matched data for 2016. We estimate poverty-SWB models at the macroareas level to account for heterogeneity in the populations, not fully controlled by territorial macro variables. We also extend previous literature by exploiting the multidimensionality in the concepts of SWB and poverty, by using overall, economic and social measures of SWB and different poverty indicators. Findings depict significant regional differences in the SWB-poverty nexus, especially when economic satisfaction is considered; poverty severity shows the highest impact on SWB. Findings support place-based policies aimed to reduce disparities in living conditions of the residents.