The Mediating Role of Urbanization on the Composition of Happiness

This paper investigates whether urbanization plays a role in determining the importance of each happiness domain on overall happiness. The analysis focuses on Italy. We exploit a multilevel model to consider regional heterogeneity in happiness determinants. We first verify whether a direct effect of urbanization exists on each specific components of happiness, as well as on overall happiness. Consistent with the findings in the literature, happiness decreases with urbanization. In the analysis of the mediating role, we find that the importance of satisfaction family explains more overall happiness in urban areas. On the contrary, satisfaction with health, friendships and environment gain more weight in rural areas.