Life Satisfaction across Cities: Evidence from Romania

Based on the literature on agglomeration economies and studies on life satisfaction, especially with regard to Central and Eastern European countries, this article focuses on subjective wellbeing in Romania between 1996 and 2011. The findings indicate that life satisfaction was greater in larger cities, although the positive effects of agglomeration held up to a certain threshold. These effects were both direct (people living in large cities were more satisfied than those living in rural areas) and indirect (people living in rural areas embedded in urbanised regions were more satisfied than people in rural areas embedded in less urbanised regions).