Fully remote work and stable long-term care costs can buffer life satisfaction in small and medium-sized cities
As populations decline and age across many developed countries, cities are increasingly being forced to ask a difficult question: How can residents maintain well-being when long-term demographic recovery is unlikely? This question is especially urgent in Japan, where the majority of small and medium-sized cities (SMCs) are already experiencing population decline.
This study examined how population decline in small and medium-sized Japanese cities affects residents' life satisfaction. As cities become more rapidly shrinking, work-life balance and caregiving support become more important for maintaining satisfaction. However, fully remote work and stable long-term care costs act as important buffers against the negative impact of population decline.
The findings suggest that policymakers should adopt "Smart Decline" strategies, investing in digital infrastructure and stable long-term care costs to support residents in shrinking cities.
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