Economic Disparities and Life Satisfaction in European Regions

This paper investigates the role of economic variables in predicting regional disparities in reported life satisfaction of European Union (EU) citizens. European subnational units (regions) are defined according to the first-level EU nomenclature of territorial units. We use multilevel modeling to explicitly account for the hierarchical nature of our data, respondents within regions and countries, and for understanding patterns of variation within and between regions. Main findings are that personal income matters more in poor regions than in rich regions, a pattern that still holds for regions within the same country. Being unemployed is negatively associated with life satisfaction even after controlled for income variation. Living in high unemployment regions does not alleviate the unhappiness of being out of work. After controlling for individual characteristics and modeling interactions, regional differences in life satisfaction still remain, confirming that regional dimension is relevant for life satisfaction.