Migration, risk tolerance and life satisfaction: evidence from a large-scale survey

Abstract

This paper brings new evidence on risk tolerance, migration and life satisfaction from a large-scale survey from in European countries (N = 28,636). The sample specifically targets young populations, which have been under-researched thus far. We distinguish between risk tolerance based on the ‘risk trait’ and that based on perceived competence. We relate these two types of risk tolerance to life satisfaction and show that the ‘risk trait’ and competence-based risk tolerance impact life satisfaction in different ways. We provide an explanation of the psychological phenomena that underlies the life satisfaction of migrants and stayers. The ability to tolerate higher risks and, plan and manage one’s own life is likely to foster increased life satisfaction. It may be an unintended and positive consequence of international migration. The findings contribute to the understanding of how migration affects people’s well-being.