19-05-2025
Does living and working in London give you a wealthier lifestyle?
Many of us would assume that the 'London premium' — those generous wages that the capital offers — somehow offsets the pain of expensive housing, long commutes and £7 pints. Otherwise, why would anyone live there?
When we debate the benefits of living in a certain area, we nearly always talk about income and wealth — how much you earn and how must your home costs — but increasingly economists think we should be looking at consumption instead.
Consumption, or how much stuff you actually buy, is a better indicator of the quality of your life. It captures whether you're living like a prince or a pauper. It reflects how much credit you can get and whether you're tightening your belt. Consumption also explains why
