What makes older adults happier? Urban and rural differences in the living arrangements and life satisfaction of older adults

Given the dynamically diverse outcomes of biological, behavioral, and environmental factors, the heterogeneity of the subjective well-being of older adults must be considered in the context of aged societies. This study conducted a joint analysis of older adults’ subjective indicators of satisfaction with living arrangements (SLA) and life satisfaction (LS). The bivariate generalized ordered probit model was employed to study 2045 urban and rural older adults. The findings show that family relationships and depression were critical sources of heterogeneity for SLA and LS when controlled for an older adults’ area of residence (urban or rural). Better family relationships and lack of depression were significant in prompting positive attitudes toward SLA and LS in older adults. In particular, there was significant heterogeneity among urban older adults who self-reported health effects on their cognitive perception of LS, but rural older adults did not show this effect. Simultaneously, urban seniors cared more about their spouses’ health and its effect on their SLA and LS. Moreover, being a widow/widower significantly affected the SLA of rural seniors. This study marks a breakthrough regarding sample heterogeneity in bivariate ordered probit models. It demonstrates that urban and rural older adults have different satisfaction levels, even in the homogeneous areas of residence. The findings of this study reveal subjective cognitive discrepancies between urban and rural older adults’ SLA and LS, thereby highlighting that the heterogeneous outcomes experienced by older adults through environmental interactions should be of greater concern in an aged society.