Income and Well-being Across European Provinces

The majority of studies investigate the effect of income on life satisfaction at either individual or country level. This study contributes with analysis at the (sub-national) province level across West European countries. I use a unique dataset Eurobarometer 44.2 Bis that is representative of province populations in a multilevel model. Provinces are defined according to The Nomenclature of Territorial Units for Statistics at second level (NUTS II). Living conditions measured by regional income increase life satisfaction beyond personal income and national income. There is larger life satisfaction inequality between the rich and the poor in poor provinces than in rich provinces. Personal income matters more for life satisfaction in poor provinces than in rich provinces.