Abstract

India is on route to becoming the largest population in the world, with around 50 % of its population estimated to be living in cities by 2050. However, for a country that is undergoing substantial changes on the economic and demographic front, India remains mostly understudied when it comes to subjective well-being (SWB). In light of a growing urban population and a consistently low rank on SWB indices, we investigate the association between urbanisation and SWB in India using ordinary least squares regression. We use the nationally representative 1995–2012 World Values Surveys and control for an extensive set of SWB predictors. We find that while Indians in cities (>500,000) report high SWB, those living in small towns (10,000–50,000) report the highest SWB. Contrary to the Western countries and China, Indians living in rural areas with small communities report low SWB, but the lowest SWB is reported by those living in areas with a population size of 50,000–100,000. • In light of the growing urban population in the global south, we explore the association between subjective well-being and urbanisation in India. Our motivation for this study is based on the substantial differences in objective living conditions between rural and urban India. • Using the World Values Survey (WVS) dataset for India (1995-2012), we find that the highest subjective well-being in India is reported by people living in smaller towns (with a population size of 10,000-50,000). Indians living in these towns report higher subjective well-being than those living in rural areas or large cities. • Our findings contradict studies conducted in the West, where higher subjective well-being is associated with a rural residence. Small towns in India integrate the best aspects of rural life while avoiding the negative aspects of life in megacities; in-situ urbanisation could therefore play an important role from a policymaker's point of view.

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