Happy Villages and Unhappy Slums? Understanding Happiness Determinants in Peru

Abstract

Generally, people living in rural areas declare they are happier than people living in cities. This is particularly significant in Peru, a South American country with great levels of inequality and traditionally low levels of reported happiness. This chapter investigates differences in levels of reported happiness between urban and rural Peruvians using regression analysis to test two hypotheses. The first concerns the possibility that urban dwellers are unhappier because of their higher emphasis on social comparison. The second one is related to the different understandings people have about the meaning of happiness. It argues that people living in cities who do not internalise concepts of happiness linked to extrinsic or materialist values will be less happy than those who adapt to a materialist environment. Using data from seven communities in Peru, the study finds that the two hypotheses partially explain the differences in happiness between rural and urban Peruvians. Further research using country-representative data is needed to confirm these findings.