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Segregation and Life Satisfaction.

Rodrigo Montero1, Miguel Vargas1, Diego Vásquez2

  • 1Facultad de Economía y Negocios, Universidad Andrés Bello, Santiago, Chile.

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Summary

Socioeconomic residential segregation positively impacts life satisfaction (LS). This study used Chilean survey data and small area estimation to analyze the complex relationship between neighborhood income differences and self-reported well-being.

Keywords:
inequalityquality of lifesegregationsmall area estimationssocial capitalsubjective wellbeing

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Area of Science:

  • Urban Sociology
  • Social Geography
  • Environmental Psychology

Background:

  • Socioeconomic residential segregation is a complex phenomenon with debated effects on individual well-being.
  • Previous research suggests both negative impacts (e.g., concentrated poverty) and potential positive impacts (e.g., reduced social comparison stress) of segregation on life satisfaction.
  • Individuals may exhibit a preference for residing in neighborhoods with similar socioeconomic backgrounds.

Purpose of the Study:

  • To investigate the effect of socioeconomic residential segregation on life satisfaction (LS).
  • To address the ambiguity in existing literature regarding segregation's impact on well-being.
  • To empirically test the hypothesis that neighborhood socioeconomic composition influences life satisfaction.

Main Methods:

  • Utilized survey data from Chile (Casen) for 2011 and 2013.
  • Measured socioeconomic segregation using the Duncan Index at the municipality level for 324 municipalities.
  • Employed Small Area Estimation (SAE) to enhance statistical significance at the municipal level and included lagged LS to address endogeneity.

Main Results:

  • Socioeconomic segregation was found to have a statistically significant positive effect on life satisfaction.
  • The positive association between segregation and LS remained robust across various econometric specifications.
  • Findings suggest that individuals report higher well-being in more socioeconomically segregated areas.

Conclusions:

  • Socioeconomic residential segregation is positively associated with increased life satisfaction.
  • The study provides empirical evidence supporting the hypothesis that neighborhood socioeconomic sorting enhances individual well-being.
  • Policy implications may need to consider the nuanced psychological effects of residential segregation on life satisfaction.