This paper assesses differences in life satisfaction along the urban-rural continuum
in 111 countries across all world regions. It combines survey data with a consistent
definition of settlements to maximise international comparability. Globally, once
controlled for individual characteristics, life satisfaction in cities is slightly
higher than in rural areas, although the difference decreases with development levels
and disappears for high-income countries. Among the factors associated with such differences
are city-rural gaps in reported health problems, in physical infrastructure (built-up
area), in expectations for future economic conditions, as well as in perceived housing
affordability. Finally, we show that life satisfaction also varies by city size. Globally,
large cities between one and five million inhabitants drive the observed city-premium
but stark heterogeneity exists across income levels. Residents in large metropolises
over five million inhabitants report the highest and lowest life satisfaction in low-
and high- income countries, respectively.