Economic inequalities and discontent in European cities

Abstract

This paper reconsiders a stylized fact of the literature on the relationship between urbanization and subjective well-being, the urban well-being paradox, i.e., the densest settings typically show the highest level of individual discontent. By drawing on an original sample based on more 50,000 individuals in 83 cities of the 27 member states of the European Union plus the UK, the paper highlights three main results. First, bigger cities are characterized by intrinsically higher inequalities than smaller ones, suggesting a scaling of disparities: interpersonal inequalities represent an often-overlooked cause of urbanization diseconomies. Second, compositional effects on discontent are particularly detrimental in cities, suggesting a scaling of discontent. Moreover, compositional and contextual characteristics mix in cities, amplifying the negative effect of inequalities especially for the most fragile social groups. Third, discontent with life and discontent with specific domains of city life do not always go in tandem. Nevertheless, the advantages of largest cities seem especially a benefit for élite individuals.