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Unhappy Metros: Panel Evidence

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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.

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Notes

  1. Interestingly, neuroscience is becoming interested in urbanism (Adli et al., 2017; Pykett et al., 2020), and initial empirical results indicate negative effect of urbanism on human brain (Lederbogen et al., 2011).

  2. Yet, on the other hand, in a city there can be community, a neighborhood village, that at least in some ways can simulate a more natural habitat for a human (Fischer 1995, 1975, Jacobs ([1961] 1993).

  3. There is a debate whether utility is happiness and it is beyond the scope of this study, for discussion see Van Der Deijl (2018), Welsh (2016), Hirschauer et al. (2015), Kenny (2011), Ng (2011), Clark et al. (2008), Frey et al. (2008), Becker and Rayo (2008), Kahneman and Krueger (2006), Kimball and Willis (2006), Kahneman and Thaler (2006), Stutzer et al. (2004), Frey and Stutzer (2002), Kahneman (2000), Frey and Stutzer (2000), Kahneman et al. (1997), Ng (1997), Kahneman and Thaler (1991), Scitovsky (1976).

  4. Burger et al. (2020) also uses faulty Gallup data as elaborated in Okulicz-Kozaryn and Valente (2021)–in general, one should avoid Gallup happiness data–Gallup charges $30,000 for access (per one year), clearly “happiness industry,” not happiness research (Davies 2015).

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  1. Department of Public Policy and Administration, Rutgers-Camden University, 401 Cooper St, Camden, NJ, 08102, USA

    Adam Okulicz-Kozaryn

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Okulicz-Kozaryn, A. Unhappy Metros: Panel Evidence. Applied Research Quality Life 18, 753–763 (2023). https://doi.org/10.1007/s11482-022-10102-7

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